KOSPI
Overcoming an early drop of over 4%, the index settled at the 5,550 level to confirm downside support, though caution remains over sustained foreign net selling.
Headline
KOSPI Rebounds Marginally on Institutional Buying Amid US Big Tech Capex Concerns; KOSDAQ and Nasdaq Slip
Key Takeaways
- Overnight, the Nasdaq tumbled 2.60% as worries over AI capex burdens and decelerating cash flows weighed on Meta and other tech peers.
- The KOSPI plunged to the 5,300 level early in the session but recovered to close up 0.30%, lifted by institutional dip-buying and SK Hynix's decision to withdraw Solidigm's IPO.
- In contrast, the KOSDAQ fell 1.62% under heavy selling in tech growth and secondary battery shares, highlighting a divergence between the two domestic bourses.
KOSDAQ
Simultaneous selling by foreign and institutional investors dragged the index toward the low-750s, driven by large-cap battery and IT component names as profit-taking persisted.
NASDAQ
The index plunged 2.60% in a single day as earnings announcements fueled concerns over massive AI infrastructure funding risks and deteriorating free cash flow.
Today's Watchlist
- Monetization timelines and free cash flow trajectories tied to Big Tech AI capex
- Whether foreign selling abates in the KOSPI and whether institutional inflows remain sustainable
- Stability of the USD/KRW exchange rate around the 1,320 level and its subsequent impact on FX-driven capital flows
Risk Note
Slowing cash flows and potential increases in borrowing costs among AI infrastructure spenders could add broad valuation pressures on tech equities, while oil price volatility driven by external geopolitical factors also warrants close attention.
Last updated: 2026-10-23 16:00:27