[Opening Market] KOSPI Slides Nearly 1% Despite Wall Street Rally

Market monitors display early trading figures, including the KOSPI, at Hana Bank's dealing room in Jung-gu, Seoul, on Oct. 22. The KOSPI opened at 5,670.11, down 65.55 points, or 1.14%, from the previous close, while the KOSDAQ opened at 789.84, down 2.92 points, or 0.37%. South Korean stocks opened lower on Thursday despite a broad-based rebound on Wall Street driven by gains in artificial intelligence (AI)-related technology shares, as profit-taking in semiconductor heavyweights weighed on the domestic market. According to the Korea Exchange, the KOSPI stood at 5,684.58 as of 9:28 a.m. on Oct. 22, down 51.08 points, or 0.89%, from the previous session. The benchmark index opened 65.55 points, or 1.14%, lower at 5,670.11 before recovering some of its early losses and hovering around the 5,700 level. Foreign investors were net buyers of 160.2 billion won, or approximately $120.75 million, extending their buying streak to a second consecutive session, while retail and institutional investors sold a net 54.1 billion won and 110.1 billion won, respectively. The weakness in Korean equities contrasted with overnight gains on Wall Street. On Oct. 21, the Nasdaq Composite rose 1.05%, while the Dow Jones Industrial Average and S&P 500 gained 0.69% and 0.58%, respectively. SpaceX surged 7.8% after reporting its first quarterly profit since going public, while Tesla climbed 3.4% amid speculation over a potential merger between the two Elon Musk-led companies. Major semiconductor stocks also advanced, with Nvidia rising 2.5% and Micron Technology gaining 2.0%, helping lift the Philadelphia Semiconductor Index by 1.97%. Chip Heavyweights Drag on KOSPI Despite positive momentum from U.S. markets, South Korea's two leading semiconductor stocks, Samsung Electronics and SK hynix, traded lower, putting downward pressure on the benchmark index. Samsung Electronics fell 0.78% to 221,750 won, while SK hynix declined 1.08% to 1,280,000 won. The losses were largely attributed to short-term profit-taking after both stocks surged more than 5% in the previous session. Han Ji-young, an analyst at Kiwoom Securities, said expectations for AI-related stocks remained elevated, making share prices increasingly sensitive to market developments. He anticipated continued volatility as investors took profits following the previous session's sharp gains. Most other major stocks also traded lower. LG Energy Solution dropped 3.40%, Samsung Biologics fell 1.62% and Hyundai Motor declined 1.78%. Samsung Electro-Mechanics and Samsung Life Insurance bucked the trend, gaining 3.77% and 0.20%, respectively. Samsung E&A, meanwhile, surged more than 18% in early trading after reporting stronger-than-expected third-quarter earnings and announcing a substantial share buyback and cancellation plan. KOSDAQ Drops Nearly 2% as Healthcare Shows Relative Strength The KOSDAQ also came under selling pressure, falling 14.10 points, or 1.78%, to 778.66. Foreign and institutional investors were net sellers of 57.9 billion won and 27.3 billion won, respectively. Secondary battery stocks were among the major decliners, with EcoPro BM falling 6.16% and EcoPro losing 3.47%. Other large-cap stocks also weakened, including Alteogen, down 2.71%, and HLB, which declined 2.01%. Semiconductor substrate manufacturer Simmtech and robotics company Rainbow Robotics posted modest gains of 2.54% and 0.13%, respectively. Despite the broader market correction, healthcare stocks have shown relative resilience. The KRX 300 Healthcare Index gained 5.65% over the past week, significantly outperforming the broader market. The sector's strength has been attributed to growing caution toward technology stocks amid concerns over excessive AI investment, alongside expectations surrounding new drug development. Institutional buying has also supported selected healthcare stocks, including Yuhan Corporation, although stock-specific performance is expected to remain uneven as the earnings season progresses. Meanwhile, the won-dollar exchange rate opened at 1,327.8 won per dollar in Seoul, up 1.8 won from the previous session, indicating a weaker won. International crude oil prices were mixed, with West Texas Intermediate (WTI) falling 0.68% amid renewed speculation over potential peace talks between Russia and Ukraine. In the cryptocurrency market, Bitcoin recovered to the $84,000 level, supported by the rebound in U.S. technology stocks and signs of renewed appetite for risk assets.