KOSPI falls 1.75% despite NVIDIA’s earnings surprise, as foreign and institutional selling drags the index down
🎧 Post Summary
Quick Summary: The KOSPI closed at 6791.64 on the 28th, down 120.73 points (1.75%) from the previous session. Overnight on Wall Street, NVIDIA jumped 8.74% on an earnings beat and the Philadelphia Semiconductor Index rose 2.33%, but foreign and institutional investors sold Korean shares in tandem, wiping out early gains. Behind the move: reports that the Trump administration is weighing broader semiconductor tariffs. Large-cap chip stocks fell across the board, with Samsung Electronics down 3.20% and SK Hynix down 3.06%, while the KOSDAQ held roughly flat. The won weakened slightly against the dollar, trading near 1,375.
The upbeat mood around chip stocks from yesterday’s NVIDIA earnings and SK Hynix’s Indiana groundbreaking cooled off in a single day. Here’s a look at why the U.S. rally didn’t carry over to Korean markets, and how individual stocks reacted.
① KOSPI closes down 1.75%, KOSDAQ roughly flat
According to the Korea Exchange, the KOSPI closed at 6791.64 on the 28th, down 120.73 points (1.75%) from the prior session. That’s a sharp pullback from the day before, when the index had held the 6900 level at 6912.37 on NVIDIA’s strong results and news of SK Hynix’s U.S. plant. The KOSDAQ held up relatively better, ending the day little changed. In Seoul’s foreign exchange market, the won edged slightly lower against the dollar, trading near 1,375.
② Why the NVIDIA rally didn’t carry over
Wall Street had a strong overnight session led by NVIDIA. The Dow Jones Industrial Average rose 0.20%, the S&P 500 gained 0.72%, and the Nasdaq Composite jumped 1.57%, while the Philadelphia Semiconductor Index climbed 2.33%. NVIDIA itself surged 8.74% after beating expectations on both earnings and revenue guidance. That momentum, however, didn’t translate into the Korean market. On the main board, retail investors were net buyers, but foreign and institutional investors sold in tandem, capping any advance. Behind the divergence: a Politico report on the 27th (local time) on the Trump administration’s consideration of broader semiconductor tariffs, covering everything from laptops to game consoles to servers. That backdrop appears to have kept Korean investors cautious even as U.S. chip stocks rallied.
③ Large-cap chip stocks fall across the board
The market’s largest chip names all declined. Samsung Electronics fell 3.20% to close at 257,500 won, while SK Hynix dropped 3.06% to 1,677,000 won. Samsung Electronics preferred shares (-3.91%) and SK Square (-3.75%) also posted steep losses. Samsung Electro-Mechanics bucked the trend, rising 2.45%, and Doosan Enerbility gained about 3%. On the KOSDAQ, names like Alteogen, Ecopro, and Rainbow Robotics slipped, while Jusung Engineering edged higher.
④ What to watch tomorrow — Fed Chair Warsh’s Jackson Hole speech
Attention is now shifting to the Jackson Hole symposium. Fed Chair Kevin Warsh is set to give his first keynote address since taking office, scheduled to air tonight Korea time. With markets looking for a clear signal on the Fed’s approach to persistent inflation, the speech is drawing significant attention. On top of that, how the Trump administration’s semiconductor tariff plan ultimately takes shape will be another key variable for markets next week.
📌 Things Investors Should Know
- U.S. rallies haven’t been translating directly into Korean market gains lately, so it’s worth checking domestic supply-and-demand conditions rather than chasing a move based on U.S. index performance alone.
- With the details of any semiconductor tariff policy still unsettled, related headlines could keep driving volatility.
- Depending on what Fed Chair Warsh says at Jackson Hole, U.S. markets and the exchange rate could move sharply overnight, so it’s worth keeping an eye on.
- Individual stock reactions have varied widely, so it’s better to look at stock-specific supply and demand rather than judging a sector purely by the index move.
It was a day when NVIDIA’s earnings surprise couldn’t lift Korean markets. With Trump-era tariff concerns and the Jackson Hole speech both in play, the KOSPI looks likely to keep swinging on external headlines for now.
References
- Investing.com — KOSPI retreats below 6800 on foreign, institutional selling despite U.S. tech strength (kr.investing.com)
- The Fact — KOSPI weak in early trade despite NVIDIA rally (news.tf.co.kr)
- Herald Corp — KOSPI weak despite NVIDIA tailwind, pausing near the 7000 mark (mbiz.heraldcorp.com)
- YTN — KOSPI closes up around 1% after paring gains… what’s next for markets (ytn.co.kr)
- Seoul Economic Daily — From laptops to servers: Trump administration weighs steep semiconductor tariffs (sedaily.com)