[Edaily Reporter Shin Ha-yeon ] The KOSPI opened up more than 2% on the 18th, regaining the 7,100 level. Although the New York stock market was weak overnight due to tensions in the Middle East and rising international oil prices and U.S. Treasury yields, strength in U.S. semiconductor stocks such as Micron is spilling over to major domestic semiconductor stocks, driving the index higher.

According to MP Doctor on the 18th, as of 9:08 a.m. that day, the KOSPI was trading at 7,126.89, up 148.95 points (2.13%) from the previous trading day. The index opened at 7,127.77, up 2.15% from the previous trading day.

On the 17th (local time), the three major U.S. stock indices all closed lower on the New York Stock Exchange, driven by rising international oil prices amid escalating tensions between the U.S. and Iran and the aftermath of a sharp spike in U.S. Treasury yields.

On the New York Stock Exchange, the Dow Jones Industrial Average closed at 53,459.78, down 272.63 points (0.51%) from the previous trading day. The S&P 500 index closed at 7,745.06, down 40.70 points (0.52%), while the tech-heavy Nasdaq Composite Index closed at 26,644.91, down 84.25 points (0.32%).

As the deadline for ceasefire negotiations between the U.S. and Iran passed without a final agreement, concerns grew that military hostilities could resume. The two sides had been negotiating an end to the war and the normalization of the Strait of Hormuz, but were unable to bridge their differences.

As a result, international oil prices also surged. Brent crude futures for October delivery and U.S. West Texas Intermediate (WTI) crude futures for September delivery closed at $90.87 and $84.50 per barrel, respectively, up 2.65% and 2.55% from the previous session.

As concerns over inflation driven by rising oil prices grew, U.S. Treasury yields also surged. The yield on the 30-year U.S. Treasury note, which serves as a benchmark for bond yields, rose to 5.31%, reaching its highest level since 2007, while the yield on the 10-year Treasury note also climbed to 4.73%.

However, semiconductor stocks showed relative strength. Micron rose about 4%, and the Philadelphia Semiconductor Index also gained 1.6%. The U.S. government’s statement that it does not support Apple’s purchase of memory chips made in China acted as a positive factor for U.S. memory chipmakers. SK hynix American Depositary Receipts (ADRs) also rose 3.04% on expectations of robust demand for artificial intelligence (AI) semiconductors.

Han Ji-young, an analyst at KIWOOM Securities, stated, “The key question this week is whether the KOSPI can sustain its rebound,” adding, “The strong performance of U.S. semiconductor stocks such as Micron and SanDisk during the holiday period could drive gains in the domestic stock market early this week.”

She noted, “With no major events on the horizon compared to the first and second weeks of August, and macroeconomic uncertainties such as interest rates and oil prices still present, there is a possibility that profit-taking and pressure to slow the pace of the rally may emerge after the initial surge early in the week. However, we should avoid interpreting this as the end of the rebound.” “This is because we have now entered a recovery phase where positive factors are beginning to take effect as they should,” he noted.

He added, “As the market processes the July Federal Open Market Committee (FOMC) minutes, U.S. economic indicators, and South Korean export data scheduled for this week, it will be important to see whether risk appetite and the trend of foreign investors halting net selling persist, and whether volatility indicators continue to stabilize.”

In terms of supply and demand, foreign investors are currently the sole net buyers in the stock market, with net purchases totaling 430.3 billion won. In contrast, retail investors and institutions are net sellers by 364.1 billion won and 50.7 billion won, respectively. Program trading shows a net buying position of 146.2 billion won, combining arbitrage and non-arbitrage trades.

By sector, the electrical and electronics sector is showing a gain in the 3% range, while manufacturing, insurance, transportation and warehousing, telecommunications, retail, non-metals, and finance are also rising. In contrast, IT services, pharmaceuticals, securities, entertainment and media, electricity and gas, transportation equipment and parts, real estate, construction, metals, general services, and chemicals are showing weakness.

Among the top-market-cap stocks, SamsungElectronics(005930)is trading at 284,500 won, up 10,000 won (3.64%) from the previous trading day. SK hynix(000660)is trading at 1,751,000 won, up 106,000 won (6.44%). In addition, SKSQUARE(402340)(5.98%), Samsung Life Insurance(032830)(4.15%), and SAMSUNG C&T CORPORATION(028260)(2.30%) are showing strength, while HyundaiMotor(005380)(-0.22%), LG Energy Solution(373220)(-3.11%), and SAMSUNG BIOLOGICS(207940)(-1.94%) are trading lower.

At the same time, the KOSDAQ index is trading at 858.65, down 6.0 points (0.69%) from the previous trading day. In terms of market sentiment, foreign and institutional investors are net sellers of 34 billion won and 40.4 billion won, respectively, while retail investors are net buyers of 76.4 billion won.

Among the top market-cap stocks, Alteogen Inc.(196170)(-3.03%), ECOPRO CO., LTD(086520)(-3.21%), and ECOPRO BM CO., LTD.(247540)(-4.46%) are trading lower, while Rainbow Robotics(277810)(1.0%) and JUSUNG ENGINEERING Co.,Ltd.(036930)(3.37%) are trading higher.