KOSPI Eyes Recovery on 10 April After 1.74% Drop as Nasdaq Sparks Global Tech Rally

Key Highlights:

The KOSPI index closed at 2,293.70 on 9 April 2025, down 40.53 points or 1.74% from its previous close of 2,334.23, weighed down by losses in electronics, shipbuilding, and financial stocks.

Investor caution amid continued concerns over exports, inflation, and weak domestic data kept buying at bay. However, the Nasdaq Composite’s historic 12.16% rally late in the global session is expected to shift risk sentiment in Asia, potentially lifting the KOSPI in today’s session.

KOSPI Performance Summary – 9 April 2025

Why Did KOSPI Fall on 9 April?

Several domestic and external factors contributed to KOSPI’s sharp decline:

• Semiconductor Weakness: Samsung Electronics and SK Hynix fell amid demand uncertainty and export data showing a slowdown.
• Shipbuilding & Export Sectors: Fears of reduced global demand impacted Hyundai Heavy and Daewoo Shipbuilding.
• Currency Volatility: A stronger Korean won weighed on export competitiveness.
• Foreign Fund Outflows: Risk-off sentiment due to geopolitical tension and U.S. bond yields led to cautious positioning.

Global Sentiment Shift: Nasdaq’s Rally Could Trigger Turnaround

The Nasdaq Composite surged 12.16%, closing at 17,124.97 after a tech-powered rally—its best performance in recent quarters. This could strongly influence KOSPI’s movement today.

Key reasons this matters for KOSPI:

• Tech Sector Synchronization: Korea’s KOSPI index has high exposure to tech and semiconductors—both of which surged on Wall Street.
• Risk-On Mood: Global appetite for growth stocks has returned, and Asia may follow suit in early trading.
• Foreign Buying Expected: International funds may resume inflows into South Korean equities, particularly IT and consumer sectors.

KOSPI Prediction – 10 April 2025

Sentiment Expectation:
Mildly bullish to sharp opening gap-up, driven by global tech euphoria.

Projected Opening:
KOSPI likely to open 0.8% to 1.5% higher, with tech and battery stocks leading gains.

Sectors to Watch:

• Semiconductors: Samsung Electronics, SK Hynix could reverse losses.
• EV & Batteries: LG Chem and Samsung SDI may gain on global AI & EV momentum.
• Biotech & IT: Risk appetite may drive a bounce in smaller tech caps.

Key Market Factors to Monitor

• Overnight U.S. Tech Futures: Continuation of Nasdaq gains will further support sentiment.
• USD/KRW Movement: A stable won would ease investor anxiety around currency-led earnings hits.
• China Trade Data: Any strength here could boost regional export optimism.

Technical Outlook: Can KOSPI Reclaim 2,330?

A close above 2,310 will indicate a trend reversal and confirm the start of a possible short-term rally.

Expert Insight: Nasdaq Euphoria May Spill Into Korean Markets

“The correlation between U.S. tech indices and Korea’s KOSPI is well-established. We expect a positive opening with short-term gains, especially in the semiconductor space,” said Eun-ji Kim, Senior Strategist at KB Securities. “However, local macro data still needs to catch up.”

KOSPI May Rebound Sharply Today

Following a 1.74% decline on 9 April, the KOSPI is set for a potential strong comeback on 10 April 2025, led by improved global sentiment after Nasdaq’s remarkable rally. The upside may be led by technology, electric vehicle, and export-oriented names.

While traders should remain cautious of mid-session volatility, the overall tone is expected to be risk-on, aligning with global recovery cues and Wall Street optimism.

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