KOSPI Slumps Amid Iran-US Conflict, Semiconductor Exports Provide Support

The KOSPI stock market index in South Korea took a hit on January 1st, falling to the 6,780 level due to rising oil prices and US Treasury yields. The renewed conflict between the United States and Iran led to a surge in international oil prices, with October-delivery West Texas Intermediate (WTI) crude settling up 2.83% at $85.76 per barrel.

However, semiconductor exports provided some support for the market. South Korea's August semiconductor exports reached a record $46.65 billion, helping to limit the decline of the KOSPI index. The index opened down 35.73 points (0.52%) at 6,784.29 but recovered much of its losses thanks to buying by retail investors and Other Corporations.

The semiconductor industry was a key factor in the market's performance. US semiconductor stocks such as Nvidia, Micron Technology, and SanDisk rallied after President Trump issued warnings against movements opposing data center construction. This helped to limit the index's losses, with Suh Sang-young from Mirae Asset Securities noting that 'Nvidia's investment in MediaTek and bargain-hunting following Friday's sharp decline led semiconductor strength.'