Samsung Electronics (005930.KS) and SK hynix (000660.KS) climbed more than 3% in pre-market trading, a day after the KOSPI plunged more than 7% in its seventh straight losing session. The gains came as U.S. stocks closed higher overnight.
As of 8:04 a.m. on the 16th, Samsung Electronics traded at 217,500 won, up 3.57% from the previous session, according to Nextrade (NTX). SK hynix changed hands at 1.305 million won, up 3.41%. Most other large-cap stocks also advanced, including LG Energy Solution (373220.KS), up 1.86%, Samsung Electro-Mechanics (009150.KS), up 6.53%, and Hyundai Motor (005380.KS), up 1.69%.
The KOSPI closed at 5,554.22 on Thursday, down 454.59 points, or 7.57%. The close fell below the index's late-July low of 5,593.56 and marked its weakest level since 5,494.78 on April 7. The seven-session losing streak was the first since Sept. 3-11, 2024, two years and one month ago. Samsung Electronics ended that session at 210,000 won, down 9.48%, while SK hynix tumbled 11.06% to 1.262 million won.
U.S. stocks rebounded overnight as Treasury yields fell. The Dow Jones Industrial Average rose 1.08% to 52,177.69, and the Standard & Poor's 500 added 0.33% to 7,744.06. The tech-heavy Nasdaq Composite gained 0.08% to 26,713.03. Caution toward artificial intelligence-related tech shares persisted, but money rotated into other sectors, lifting consumer stocks. An improved economic outlook also supported the rebound, with the 10-year Treasury yield falling to 5.086%.
Analysts said South Korean stocks could see a technical rebound, with prices edging higher after the steep selloff. "Looking at past cases of the largest cumulative declines over seven sessions, prices have tended to retrace in the short term," said Han Ji-young, an analyst at Kiwoom Securities. "It is time to consider a strategy of recovering the recent losses while watching whether the third-quarter earnings season restores confidence in profits and eases concerns about AI stocks."
