Nasdaq Logs 12th Straight Gain, SOX Rips — KOSPI Set for Bullish Open — Dongchun 26/04/17 AM

Nasdaq Logs 12th Straight Gain, SOX Rips — KOSPI Set for Bullish Open — Dongchun 26/04/17 AM

Hey, Dongchun here.

Today in 3 Lines
  • US markets hit fresh all-time highs Wednesday — Nasdaq's 12th straight gain, longest since 2009.
  • Semis led the charge: SOX near 8,928, ON Semi +9.75%, AI capex demand driving the move.
  • KOSPI looks set to gap up Thursday; foreign chip buying in the first 30 minutes is the key signal.

1. Today's US Close — The Korea Angle

All three major indexes closed at all-time highs Wednesday. Nasdaq (+0.36%) logged its 12th consecutive daily gain — the longest streak since July 2009. S&P 500 (+0.26%) and Dow (+0.24%) also hit record closes. Broad-based, not just a handful of mega-caps leading it.

For Korean stocks, the setup is clean: US risk-on is real and expanding. KOSPI already climbed 2.07% to 6,091 on April 16, so some of this is baked in — but the direction is firmly bullish. Expect a gap-up open Thursday morning, with sentiment firmly in risk-on mode heading into Asia.

2. Sectors That Matter for Korea

Semis were the standout. SOX (Philadelphia Semiconductor Index, the US benchmark for chipmakers) closed near 8,928, with ON Semi surging 9.75% and Lumentum jumping 9.35% on AI and optical networking demand. Tech overall added 2.19%. When SOX moves like that, Korean chipmakers tend to follow at the open.

And they were already moving: SK Hynix gained 2.99% and Samsung Electronics rose 2.18% on April 16 — before this latest SOX leg up. Those names have more room to run Thursday.

Financials added 0.88%, helped by a widening yield curve (10Y-2Y spread at +0.53%) — a positive for Korean banks too. Energy pulled back 0.39% despite WTI oil jumping 3.72% to $94.75, as traders took profits. Korean refiners could still catch a tailwind from that oil move, and Hyundai (+3.36%) and Kia (+1.54%) are benefiting from easing geopolitical tension keeping energy costs manageable.

3. Foreign Flow Watch

The dollar is sliding — DXY has fallen 7 sessions in a row to 98.19, back to pre-Iran tensions levels. USD/KRW is sitting around 1,484 won with the won strengthening. A softer dollar is a classic green light for foreign money moving into Korean equities.

The numbers back it up. From April 1–14, foreign investors net-bought roughly $2.1 billion worth of SK Hynix and $1.45 billion worth of Samsung Electronics (converting at ~1,350 KRW/USD). After heavy selling in February and March, foreigners clearly flipped to buyers in April — and the conditions for that to continue are still in place.

EWY (iShares MSCI South Korea ETF), a real-time barometer of foreign appetite for Korean equities, should be tracking the chip rally. Watch it in overnight US pre-market as a read on Thursday's open.

4. Stocks on the Radar for Tomorrow

Stock What They Do Catalyst
SK Hynix Korea's top memory chipmaker — like a Micron equivalent SOX surge + foreign buying running $2.1B in April alone
Samsung Electronics Chips, displays, and consumer electronics — Korea's biggest company Same chip tailwind, $1.45B in foreign net buys this month
Hyundai Motor / Kia Korea's top automakers, with major US market exposure US-Iran talks easing = lower oil risk; both up 1.5–3.4% on April 16

5. Tomorrow's Korea Open — What to Watch

Bias: Bullish. KOSPI (Korea's benchmark index, similar to the S&P 500) is set to gap up on the US all-time-high momentum, a weak dollar, and strong semiconductor tailwinds. The index is approaching the 6,100 level though — expect some resistance there in the short term.

Two things that could flip the script overnight:

  1. Fed independence headlines — Trump has been publicly pressuring Fed Chair Powell (whose term ends in May) and the DOJ paid an unannounced visit to Fed headquarters Wednesday. If anything escalates, dollar volatility could spike and create a choppy open. Wall Street CEOs are pushing back in support of Powell, which is helping steady nerves for now.
  2. US-Iran negotiations — A second round of talks is ongoing. Progress keeps the risk-on tone alive and could push oil back down. A breakdown would send WTI higher and flip sentiment fast.

If foreign buyers stay aggressive in chips during the first 30 minutes of KOSPI trading, the index likely holds gains and pushes toward 6,100. If they start taking profits, expect the index to stall and chop around that level.

Sources

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