[Edaily Reporter Kim Hyung-il ] A buy-side circuit breaker was triggered on the KOSPI market, buoyed by a sharp rally in the U.S. stock market in New York. Investor sentiment, which had been subdued during last week’s sharp sell-off, appears to be recovering thanks to favorable external factors such as a surge in U.S. semiconductor stocks and a decline in international oil prices. The KOSPI jumped more than 5% early in the session, and the KOSDAQ also rose by over 4%, with both indices showing a strong upward trend.

According to the Korea Exchange on the 10th, the buy-side sidecar was triggered at 9:06 a.m. that day as the KOSPI 200 futures price surged. This marked the 58th sidecar activation this year, with 28 buy-side sidecars and 30 sell-side sidecars. At the time of activation, the price of the nearest-month Mini KOSPI 200 futures contract rose 5.76% from the reference price of 776.26 points to 821.04 points, and this surge persisted for one minute. Consequently, the effectiveness of buy orders in program trading was suspended for five minutes. At the time of activation, the net buy volume from program trading stood at 79.3 billion won.

At 9:10 a.m., a buy-side sidecar was also triggered in the KOSDAQ market. At that time, the KOSDAQ 150 futures were trading at 1,099.50, up 6.29%, while the KOSDAQ 150 spot index stood at 1,095.53, up 5.87%. In both markets, the validity of buy orders from program trading was suspended for five minutes.

A buy-side car is a market stabilization measure triggered when futures prices surge above a certain level and remain there for one minute. In the KOSPI market, it is triggered when the KOSPI 200 futures price rises more than 5% above the reference price and remains there for one minute. In the KOSDAQ market, it is triggered only when the KOSDAQ 150 futures price rises more than 6% above the benchmark price and the KOSDAQ 150 spot index rises more than 3% from the previous trading day’s closing price—both conditions must be met simultaneously for one minute.

Early in the session, both the KOSPI and KOSDAQ are surging in tandem. As of 9:18 a.m., the KOSPI stood at 5,295.68, up 276.83 points (5.52%) from the previous trading day. The KOSDAQ rose 31.80 points (4.98%) to 670.77. In the KOSPI market, 734 stocks rose, significantly outnumbering the 130 that fell, and on the KOSDAQ, 1,457 stocks rose, overwhelming the 216 that fell.

On the KOSPI, a rebound led by large-cap stocks was particularly notable. The large-cap index rose 5.48%, while mid-cap and small-cap stocks also gained 2.93% and 1.87%, respectively. Among the top stocks by market capitalization, SK hynix(000660)rose 8.19% to 1,229,000 won, while SamsungElectronics(005930)climbed 5.58% to 200,500 won. SKSQUARE(402340)rose 7.76%, SamsungElectronics(1P)(005935)rose 6.1%, and SamsungElectroMechanics(009150)rose 5.93%. LG Energy Solution(373220)and HyundaiMotor(005380)also posted gains of 2.83% and 3.31%, respectively. SAMSUNG BIOLOGICS(207940)fell 1.39%.

By sector on the KOSPI, medical and precision instruments rose 7.54%, recording the highest gain, followed by machinery and equipment (7.43%), electrical and electronics (6.70%), and manufacturing (5.69%). On the KOSDAQ, buying momentum centered on semiconductor-related sectors, with Machinery & Equipment rising 6.6% and Electrical & Electronics climbing 6.05%. EO Technics Co., Ltd.(039030)rose 9.32%, JUSUNG ENGINEERING Co.,Ltd.(036930)rose 8.68%, and HPSP Co., Ltd.(403870)rose 8.11%.

In terms of supply and demand, simultaneous buying by foreign investors and institutions supported the KOSPI’s rebound. As of 9:18 a.m., foreign investors and institutions had net purchased 220.8 billion won and 314.1 billion won worth of KOSPI stocks, respectively. Retail investors net sold 571.4 billion won worth of stocks. On the KOSDAQ, institutions net purchased 51.3 billion won worth of stocks, while foreign investors net sold 52.5 billion won worth.

Overnight strength in the U.S. stock market also provided a tailwind for the domestic market. On the 9th (local time), the Dow Jones Industrial Average closed at 52,389.75 on the New York Stock Exchange, up 2.15% from the previous trading day. The S&P 500 Index rose 2.35%, and the Nasdaq Composite Index rose 2.74%. In particular, the Philadelphia Semiconductor Index surged 6.9%. AMD rose 13.26%, while Broadcom and Micron also gained 8.78% and 6.25%, respectively. NVIDIA fell 4.27% amid controversy surrounding CEO Jensen Huang, but bargain-hunting spread to other semiconductor stocks.

The decline in international oil prices also contributed to improved investor sentiment toward risky assets. As U.S. President Donald Trump downplayed the likelihood of further military strikes against Iran, December West Texas Intermediate (WTI) crude futures closed at $86.85 per barrel, down 4.38% from the previous trading day. This is interpreted as having had a positive impact on the domestic stock market, as concerns over geopolitical instability in the Middle East and rising oil prices eased somewhat.

However, some analysts note that it remains to be seen whether this sharp rebound will lead to a sustained recovery. Han Ji-young, an analyst at KIWOOM Securities, pointed out that the domestic stock market rose 2% during the previous day’s session only to give up all its gains, stating, “This demonstrates that the shock from last week’s series of sharp declines has left market participants skeptical about the market’s resilience.”

She continued, “There is a growing tendency for the market to view every stock price rebound as a selling opportunity rather than a signal of a trend recovery, which is preventing intraday gains from sustaining,” adding, “The fact that the negative meme ‘2 o’clock promise’ is frequently circulating is another example of the fragility of domestic investor sentiment.”

Finally, he analyzed, “Existing headwinds, such as uncertainty in the AI industry and skepticism regarding semiconductor earnings, are already largely reflected in stock prices.” He added, “Given that the surge in U.S. semiconductor stocks, the U.S. October Consumer Price Index (CPI) scheduled for release this week, and CoreWeave’s earnings report could provide opportunities for a turnaround, it is appropriate at this point to prioritize a strategy based on the premise that the domestic stock market has become more attractive for entry.”