South Korea stocks seen range-bound after KOSPI reclaims 7,000

  • Investors will assess South Korean stocks against earnings and macroeconomic developments this week.
  • Samsung Electronics' operating-profit consensus fell from 122.4 trillion won to 105 trillion won.
  • South Korea's September semiconductor exports surged 263% year-on-year.

South Korea's stock market is expected to remain range-bound from October 5 to 9 as investors weigh corporate earnings against interest rates, oil prices and other macroeconomic variables. The KOSPI reclaimed 7,000 in late trading on October 2, but rising U.S. Treasury yields had weighed on domestic shares the previous week. The U.S. 10-year Treasury yield reached 5.23% intraday on October 1, a 24-year high, increasing corporate funding costs and discount rates. Samsung Electronics' preliminary third-quarter earnings, scheduled for October 8, are the week's main corporate focus. Daishin Securities said the consensus estimate for operating profit fell from 122.4 trillion Korean won on August 17 to 105 trillion won last week, partly because of the won's appreciation. Expectations for a continuing semiconductor supercycle remain firm, supported by September South Korean semiconductor exports that surged 263% year-on-year. Investors will also assess Micron's stronger-than-expected results, U.S. services data, remarks from New York Fed President John Williams and the September FOMC minutes. Oil prices and interest rates could stabilize ahead of the U.S. midterm elections, while Samsung Electronics and SK Hynix are nearing the end of their share-purchase programs.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.