KOSPI surpasses 7,000 points as semiconductor investor sentiment revives

South Korea's KOSPI index has broken the 7,000-point barrier during intraday trading, marking a significant recovery driven by a resurgence in investor sentiment towards the semiconductor industry. The index climbed 2.68% to 6,995.67 at the opening and briefly touched 7,010.86, reflecting a five-day consecutive upward trend.

The positive market movement is largely attributed to recent U.S. inflation data, including both the Consumer Price Index (CPI) and Producer Price Index (PPI), which came in line with market expectations. This has helped to alleviate fears of aggressive interest rate hikes by the U.S. Federal Reserve. The decline in international oil prices and U.S. Treasury yields further supported market optimism, with the S&P 500 reaching a new record high.

Key players in the semiconductor sector, such as Samsung Electronics and SK Hynix, experienced substantial gains. Samsung Electronics rose 2.05% to 273,500 won, while SK Hynix saw a significant jump of 6.09% to 1,690,000 won. Related stocks like SK Square and Samsung Electro-Mechanics also posted gains exceeding 3%.

Positive news from semiconductor companies, including SanDisk's long-term revenue growth forecast, has bolstered the sector. Analysts suggest that the negative narrative surrounding semiconductor stocks is beginning to dissipate. Meanwhile, the KOSDAQ index also saw a rise, increasing by 1.23% to 871.98.

“

The negative narrative surrounding semiconductor stocks is being resolved.