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KOSPI Eyes Continued Rebound on US Market Rally; KOSDAQ Volatility Expected
Finance · Investment Banks/Brokers · yonhap_finance · 2026-08-04
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The KOSPI is expected to open higher following a strong US market rally, while investors watch for potential profit-taking in the overheated KOSDAQ index.
What Happened
US Market Rally: Major US indices surged overnight, driven by easing geopolitical tensions with Iran and strong earnings from key technology companies. The rally in the semiconductor sector is expected to provide a positive tailwind for the South Korean market.
Domestic Market Outlook: The sharp rise in SK Hynix's ADR is likely to boost sentiment for domestic semiconductor heavyweights. However, after-hours weakness in AMD shares following its earnings report may act as a cap on further gains for the broader index.
KOSDAQ Overheating: The KOSDAQ index has surged over 20% in three sessions, triggering buy-side sidecars for three consecutive days. Investors are bracing for potential profit-taking, and a rotation of funds back into KOSPI-listed semiconductor stocks remains a possibility.
Investment Strategy: Analysts suggest the recent KOSDAQ surge is largely a tactical catch-up move rather than a structural shift toward small-cap stocks. Market participants are advised to prepare for volatility as capital rotates between large-cap and small-cap segments.