Key Highlights:
After an extraordinary 6.60% rally on 10 April, the KOSPI Index may face selling pressure today (11 April 2025) as markets react to a dramatic sell-off in U.S. equities, particularly the Nasdaq Composite, which dropped 737.66 points (-4.31%) overnight.
South Korea’s equity markets typically follow Wall Street’s cues, especially when volatility strikes tech-heavy indices. The KOSPI, which closed at 2,445.06 on 10 April, may find it hard to sustain its gains today.
Recap: KOSPI’s Performance on 10 April 2025
| Metric | Value |
|---|---|
| Close | 2,445.06 |
| Gain | +151.36 (+6.60%) |
| Day’s High | 2,445.06 |
| Open | 2,395.13 |
| Low | 2,391.39 |
| Previous Close | 2,293.70 |
| 52-Week High | 2,896.43 |
| 52-Week Low | 2,284.72 |
The rally was largely driven by semiconductors (Samsung, SK Hynix), EV stocks, and renewed foreign inflows, tracking earlier optimism from U.S. and Asian markets.
Global Cues: Nasdaq’s Sell-Off May Trigger a KOSPI Reversal
Despite the bullish momentum in Asian markets, the Nasdaq Composite’s 737-point fall on 10 April drastically changed global risk sentiment. The sharp reversal was fueled by:
- Hotter-than-expected U.S. inflation data
- Renewed fears of delayed rate cuts by the Federal Reserve
- Profit booking in tech and AI-related stocks
- Rising bond yields and risk-off behavior across U.S. equities
This presents significant downside risk for KOSPI, which is sensitive to tech sentiment.
Pre-Open Prediction: How KOSPI May React Today (11 April)
KOSPI Opening Expectation:
- Likely to open gap-down by 0.7% to 1.2%
- Initial support near 2,400 may be tested
- Traders may rotate into defensive sectors like healthcare, utilities
Likely Market Drivers:
- Tech Stocks: Samsung Electronics and SK Hynix could see mild corrections after Nasdaq tech drag.
- Foreign Investor Activity: Reversal in FII flows possible after Wall Street’s risk-off session.
- USD/KRW Exchange Rate: Watch for forex volatility pressuring exports or aiding defensives.
- Macro Calendar: Investors will stay alert for upcoming U.S. PPI and Korea’s trade balance reports.
Technical Levels to Watch Today
| Level Type | Value |
|---|---|
| Resistance Zone | 2,470–2,500 |
| Immediate Support | 2,400 |
| Critical Breakdown | 2,375 |
| Buy Zone on Dips | 2,350 |
A break below 2,375 could signal short-term trend reversal, while holding above 2,400 may invite value buying.
Expert Commentary
“The KOSPI’s outsized move yesterday was based on momentum, not fundamentals. Nasdaq’s drop is a clear sign that global investors may hit the brakes today,” said Jinwoo Lee, Senior Analyst at Shinhan Investment Corp.
“Expect a tech-led pullback, but if U.S. futures stabilize or Korean macro data supports, the dip may be bought into,” added Haejin Park, Market Strategist at Korea Investment & Securities.
Caution Ahead After Euphoria
Despite a euphoric 6.6% jump, the KOSPI Index is poised for a cautious start today, influenced by the global shock from Nasdaq’s crash. While a pullback appears likely, the broader trend remains intact unless key support levels break.
Traders are advised to watch the open closely and brace for volatility in tech, exporters, and AI-exposed stocks. Eyes will also be on Samsung and SK Hynix, whose direction will largely decide today’s mood.
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