KOSPI Surges Over 5%, Buy-Side Sidecar Activated Amid Micron Earnings Boost

The South Korean stock market experienced a significant surge on June 25, with the KOSPI index jumping more than 5%. This rapid rise prompted the activation of a buy-side "sidecar" mechanism for the second consecutive day, marking the 14th instance this year. The KOSPI index stood at 8915.52, up 454.48 points from the previous trading day, continuing its upward trend after a sharp decline on June 23.

The KOSPI 200 futures index also saw a gain exceeding 5%, leading to the activation of the buy-side sidecar at 9:07 AM. This mechanism temporarily halts program buy orders for five minutes when the KOSPI 200 futures index rises by more than 5% for over a minute.

Major companies also saw substantial gains. Samsung Electronics' stock increased by 4.26% to 355,000 won, while SK Hynix rose by 9.69% to 2,830,000 won. Samsung C&T and SK experienced even more dramatic increases of 12.98% and 19.10%, respectively.

This market rally is largely attributed to a surprisingly strong earnings report from U.S. memory chip maker Micron. Micron announced that its revenue for the third fiscal quarter (March-May) reached $41.46 billion, a 345.7% increase compared to the same period last year. Additionally, a decrease in international oil prices, stemming from eased tensions in the Middle East, provided a favorable environment for the stock market. Brent crude fell by over 4% to trade below $74 a barrel, and West Texas Intermediate (WTI) also weakened, influenced by expectations of progress in U.S.-Iran peace talks and increased oil supply.