KOSPI
The index closed at 5735.66 (+3.29%), recouping much of the prior session's steep losses; however, further confirmation is needed regarding sustained net buying by foreign and institutional investors.
Headline
October 21, 2026 Market Closing Briefing: Semiconductor Rebound and Sector Divergence
Key Takeaways
- The market attempted a technical rebound following sharp declines in the previous session driven by AI profitability concerns and bond yield pressures.
- The KOSPI rebounded toward the 5,730 level, supported by potential foreign inflows into major large-cap semiconductor stocks.
- The Nasdaq closed virtually flat (-0.02%) as strong corporate earnings and easing oil prices were offset by a wait-and-see stance ahead of Big Tech earnings.
KOSDAQ
The index rebounded to 792.76 (+1.38%), but supply-demand divergence persists among individual names across secondary battery and small- to mid-cap tech stocks following the loss of the 800 level in the previous session.
NASDAQ
Finishing at 26424.82 (-0.02%), the index showed a lack of clear direction as market participants adopted a cautious, wait-and-see stance ahead of Big Tech earnings, despite stabilizing global oil prices and easing yield pressures.
Today's Watchlist
- Earnings guidance from upcoming Big Tech and major AI hardware corporate earnings releases
- Impact of USD/KRW volatility in the 1,320 won range on Q3 operating profits of export-oriented manufacturers
- Trends in global oil prices and Treasury yields dependent on whether Middle East geopolitical risks de-escalate
Risk Note
Heightened short-term earnings volatility across major leading sectors such as defense and secondary batteries, coupled with concerns over delayed returns on AI infrastructure investments, calls for caution regarding excessive leverage.
Last updated: 2026-10-21 16:00:30