The KOSPI recovered the 7,700 line during Tuesday's session, a day after plunging nearly 5% and triggering a circuit breaker. The index fell to the 7,300 line early in the session on the sharp decline in US semiconductor stocks and geopolitical instability in the Middle East, but bargain hunting flowed in and helped it turn higher.
According to the Korea Exchange (KRX), the KOSPI stood at 7,782.44 as of 10:03 a.m., up 126.13 points, or 1.65%, from the previous trading day.
The KOSPI opened at 7,452.48, down 2.66% from the previous session, hit by the plunge in US chip stocks and Middle East geopolitical risks. It widened its losses immediately after the open, sliding to the 7,350 line around 9:03 a.m., but quickly recovered ground as bargain hunting emerged and turned into positive territory.
Among top market-cap stocks, SK hynix (000660.KS) led the rebound, trading at 2.304 million won, up 4.68% from the previous session. Hyundai Motor (0.42%), SK Square (0.22%) and Samsung Electronics preferred shares (0.60%) also advanced.
By contrast, Samsung Electronics (005930.KS) traded flat at 296,000 won. LG Energy Solution (-2.11%), Samsung Life Insurance (-3.07%), Samsung C&T (-1.88%), Samsung Biologics (-1.20%) and Samsung Electro-Mechanics (-0.73%) were among the decliners.
Overnight, the New York stock market fell, led by semiconductor stocks. The Dow Jones Industrial Average dropped 0.25%, the Standard & Poor's (S&P) 500 fell 0.45%, and the Nasdaq declined 1.16%. Intel (-9.66%), AMD (-6.51%) and Micron (-4.71%) posted sharp losses, while the Philadelphia Semiconductor Index also fell 4.65%.
Tensions between the United States and Iran flared again, dampening risk appetite. Following an attack on a vessel in the Strait of Hormuz, news that the United States had launched a military response against Iran sent international oil prices surging and weighed on global stock markets broadly.
"Volatility rose from early in the session due to external burden factors such as US market weakness and uncertainty over the Strait of Hormuz," said Han Ji-young, an analyst at Kiwoom Securities. "But the pre-reflection of the US chip stock plunge and the inflow of bargain hunting following the chain of sharp declines since July are lending the index resilience, and it will attempt an intraday rebound."
