PCE, Micron earnings, and export data smoothly digested… Samsung Electronics and SK hynix turn higher
KOSDAQ logs largest daily gain since August 10… Over 1,100 stocks advance in broad rally
Key Market Trends
① PCE comes in below expectations, easing pressure for an October rate hike
The U.S. August Personal Consumption Expenditures (PCE) price index came in below market expectations by 0.1 percentage point month-on-month and 0.3 percentage point year-on-year.
Although some analysts noted that changes in calculation methodology shaved off roughly 0.2 percentage point, the overall figures remained better than feared even when factoring in the adjustment.
Following comments from New York Fed President John Williams that there is no rush to raise rates further, the last PCE reading ahead of the October FOMC meeting was smoothly digested, bolstering expectations for a rate pause.
② Micron posts robust earnings; Samsung Electronics and SK hynix rebound
Micron Technology surpassed Wall Street estimates across revenue, profits, and next-quarter guidance.
Although its stock lacked clear direction in after-hours trading due to concerns over gross margin moderation, the underlying results reconfirmed solid demand across the memory chip sector.
Micron disclosed that it has already committed 75% of next year's volume to clients and is currently negotiating supply deals through 2028.
In the domestic market, Samsung Electronics and SK hynix reversed early losses to finish higher, together accounting for approximately 85% of the benchmark index's gain.
South Korea's September export data also posted a sharp increase, confirming sustained export strength throughout the third quarter.
③ KOSDAQ surges in strong rebound; sector rotation expands beyond semiconductor supply chain
Semiconductor materials, parts, and equipment stocks rallied on Micron's stellar earnings and expectations of expanding capital expenditure.
Buying momentum subsequently spread to robotics, auto parts, pharmaceuticals, secondary batteries, and gaming stocks.
The junior KOSDAQ index recorded its largest single-day gain since August 10, with more than 1,100 individual stocks advancing for the first time since September 4.
Foreign and institutional investors each posted net purchases exceeding 300 billion won on the KOSDAQ, marking their first joint buying spree of this scale since June 26.
Capital Flows and Sector Performance
Foreign investors turned net buyers of electrical and electronics shares on the KOSPI during intraday trading, while also scooping up pharmaceuticals, brokerages, precision medical devices, and telecommunications. Conversely, they net sold financials, machinery, metals, transportation equipment, and chemicals.
Institutional investors were net buyers of electrical and electronics, pharmaceuticals, metals, and financial stocks.
On the KOSDAQ, both foreign and institutional investors staged major net buying operations, providing robust support for the market's upward trajectory.
Market Analyst's Perspective
The market has smoothly navigated three major catalysts investors were waiting for: PCE inflation, Micron's earnings, and South Korea's export data. Rather than triggering sell-on-news sentiment, these events served as positive tailwinds, with Micron's results in particular helping cool debates over a peak in the memory cycle.
SK hynix also clarified its stance on the controversial listing of its subsidiary Solidigm, stating it will make decisions with shareholder value as a priority. This helped alleviate dilution fears linked to reduced equity ownership, further bolstering sentiment around semiconductor stocks.
To be sure, short-term pressures from interest rates and crude oil prices persist, and negotiations between the U.S. and Iran have yet to yield concrete outcomes. However, given the recent surge in Middle Eastern crude exports, investors should monitor whether geopolitical headlines escalate enough to alter broader market trends.
The stock-selective environment that began in September is extending into the early fourth quarter. With valuations in both markets remaining manageable, focus should now turn to whether sector rotation continues across established leading stocks, capital investments, and policy-driven plays.
Source: Market Briefing Telegram (t.me/shmstory)
YouTube: Market Briefing TV www.youtube.com/@blueoak1004
This article was re-edited from a Telegram post by 'Sihwangman' (Market Briefing) with the author's consent. Content may contain errors and does not constitute a recommendation to buy or sell securities. This content cannot be used as legal grounds under any circumstances.
