Summary

  • Samsung Electronics, SK Hynix and other South Korean semiconductor heavyweights surged 5%-8% in early trading.
  • The overnight 6.86% gain in the US Philadelphia Semiconductor Index, along with advances in the three major New York indexes, helped drive a rebound in South Korea's stock market.
  • It is difficult to conclude the rebound has staying power before investors see US CPI data later today and CoreWeave earnings tomorrow.

Forecast Trend Report by Period

Samsung Electronics, SK Hynix and other South Korean semiconductor heavyweights surged in early trading on Nov. 10, tracking an overnight rebound in the Philadelphia Semiconductor Index as bargain buying returned to US artificial intelligence and chip stocks.

As of 9:17 a.m., Samsung Electronics was trading at 201,000 won, up 5.85% from the previous session. SK Hynix rose 8.71% to 1.235 million won. At the same time, Samsung Electronics preferred shares gained 6.63% to 160,900 won, while SK Square climbed 8.45% to 783,000 won.

In overnight US trading, the Philadelphia Semiconductor Index advanced 6.86%. The gain followed a drop of more than 12% on Nov. 5, when bargain buying was estimated to have returned after the selloff.

All three major New York indexes also finished higher. The Dow Jones Industrial Average rose 1,104.02 points, or 2.15%, to close at 52,389.75. The S&P 500 added 173.08 points, or 2.35%, to 7,549.94, while the Nasdaq Composite gained 673.71 points, or 2.74%, to 25,253.14.

Individual stock moves were mixed. Nvidia fell 4.3% amid fallout from a scandal involving Chief Executive Officer Jensen Huang. AMD, up 13.3%, and Broadcom, up 8.8%, gained on expectations they could benefit in relative terms. Micron rose 6.3% and SanDisk added 6.6% as bargain buying emerged.

Easing geopolitical tensions also supported sentiment. International oil prices fell more than 4% after President Donald Trump made comments that lowered expectations of a military strike on Iran, easing Middle East-related concerns. Morgan Stanley and others said it was excessive to interpret investment delays caused by data-center regulation as a broader reduction in capital spending across the AI industry.

Han Ji-young, an analyst at Kiwoom Securities, said South Korea's stock market is set to rebound on upside catalysts including a more than 6% rise in the Philadelphia Semiconductor Index and a more than 5% jump in overnight Kospi 200 futures, despite investor caution ahead of US consumer price index data due later on Nov. 10 and CoreWeave earnings due on the morning of Nov. 11.

Yang Hyun-kyung, an analyst at iM Securities, said investors need to determine whether the rebound in heavyweight chip stocks such as Samsung Electronics and SK Hynix spreads to other sectors. She added that it is difficult to conclude the rebound has staying power before the market checks interest-rate pressure and funding conditions through US CPI data later on Nov. 10 and CoreWeave earnings on Nov. 11.

Suehyeon Lee