Kospi rebounds after three sessions as semiconductor stocks rally despite record US bond yields

The Kospi rebounded Wednesday for the first time in three sessions, recovering the 6,900 level in early trading despite a surge in US government bond yields.

As of 9:52 a.m., the Kospi stood at 6,912.46, up 0.61 percent from the previous close. The index opened 1.06 percent higher at 6,943.47.

Foreign investors were net buyers of 46.2 billion won ($34 million), while individuals and institutions were net sellers of 175.8 billion won and 85.5 billion won, respectively.

All three major Wall Street indexes closed slightly lower overnight as US government bond yields spiked, but resilience among semiconductor and other technology stocks helped restore investor sentiment.

Anthropic's announcement that it would continue large-scale AI infrastructure investment lifted memory chip stocks, with Micron rising 1.05 percent, SK hynix's American depositary receipts advancing 2.62 percent and SanDisk gaining 0.98 percent. Semiconductor equipment makers also climbed, with Lam Research up 2.99 percent and ASML up 3.56 percent.

A sharp drop in global oil prices also supported sentiment, after Saudi Arabia announced it would resume crude oil exports through the Red Sea.

Overnight, West Texas Intermediate crude for November delivery fell 3.48 percent to $89.38 per barrel, while Brent futures dropped 2.56 percent to $102.59 per barrel.

However, US government bond yields continued to climb, weighing on markets. The 10-year US Treasury yield — a global benchmark — surged as high as 5.293 percent during trading, its highest level since 2007, while the 30-year yield briefly touched 5.621 percent, a level not seen since 2002.

Among the Kospi's top market-cap stocks, Samsung Electronics was trading near flat at 272,500 won. SK hynix rose 1.93 percent to 1,799,000 won.

Among other large-cap names, SK Square gained 1.97 percent and LG Energy Solution advanced 0.43 percent, while Samsung Electronics preferred shares fell 1.47 percent, Samsung Electro-Mechanics slipped 0.33 percent, Hyundai Motor declined 0.86 percent and Samsung Biologics dropped 0.72 percent.

The Kosdaq opened up 0.59 percent at 854.78 and was trading 0.95 percent higher at 857.87 at the same time.

Institutions were net sellers of 18.2 billion won on the Kosdaq, while individuals and foreign investors were net buyers of 14.8 billion won and 19.4 billion won, respectively.

Top Kosdaq market-cap stocks posting gains included Alteogen, up 1.08 percent; Ecopro, up 1.40 percent; Jusung Engineering, up 2.93 percent; Ecopro BM, up 1.89 percent; and Rainbow Robotics, up 1.68 percent. Semiconductor equipment stocks also rallied broadly, with Wonik IPS rising 2.38 percent and EO Technics climbing 3.73 percent.

Han Ji-young, a researcher at Kiwoom Securities, said foreign investor trading flows would be the key variable to watch Wednesday. "Over the two trading days of this final week of September — Monday and Tuesday — foreigners net sold around 6.2 trillion won worth of Kospi shares, with roughly 87 percent of that concentrated in semiconductor stocks," she said.

Han added that some further rebalancing-related selling pressure could emerge on the last day of the quarter, but said the intensity would likely be lower than in June. "It may also be worth keeping open the possibility that the earnings season kicking off in October — including Micron's results early Thursday morning — could help offset the discount-rate burden from rising interest rates," she said.