The KOSPI index opened lower on February 26, 2025, reflecting market fluctuations influenced by recent global developments, particularly the impact of AI chip giant Nvidia's strong quarterly performance.
According to Yonhap, the KOSPI initially added 11.19 points or 0.42 percent to reach 2,629.90 within the first 15 minutes of trading. Despite Nvidia's strong showing, concerns lingered about tariff issues following President Trump's recent announcements, which contributed to the mixed investor sentiment.
On the previous day, Wall Street had closed mixed with the Dow Jones Industrial Average falling by 0.43 percent, and the Nasdaq composite gaining 0.26 percent, indicating fluctuated investor confidence amid anticipation of Nvidia's earnings report.
After the market closed, Nvidia disclosed remarkable financial results, reporting $22 billion in net income and $39.3 billion in revenue for the fourth quarter, surpassing market expectations. The demand for Nvidia's latest Blackwell processors significantly contributed to these solid results.
Much of the trading day was influenced by tech stocks responding to Nvidia's earnings, seen as pivotal by investors. Notably, shares of major companies such as SK Hynix and Samsung Electronics faced downward pressure. SK Hynix slipped by 0.7 percent, impacted by the strength of Nvidia’s results and the growing demand for advanced AI chips.
Market sentiment took another hit on February 27, as South Korean shares slid significantly, with SK Hynix continuing to lead the decline. Reports indicated the KOSPI fell by 0.73 percent, settling at 2,621.75 points. Analysts noted the market's apprehension over potential tariffs being levied on imports by the United States, heightening concerns about future economic stability.
Adding to the woes was the performance of other index heavyweights. Samsung Electronics dipped 0.2 percent, LG Energy Solution decreased by 1.7 percent, and Hyundai Motor fell by 2.2 percent. The prevailing conditions indicated broad-based losses across almost all sectors.
Despite this downward movement, the previous day had seen some positive activity with the KOSPI bouncing back slightly, following two days of decline. On February 26, the index finally showed resilience by adding 10.80 points, closing at 2,641.09. The tough trading environment marked by fluctuated investment across different sectors provided little clarity moving forward.
The expectation of global economic repercussions stemming from America's trade policies hung heavily over the market. On February 26, additional data reported from the Commerce Department revealed substantial pullbacks by new home sales within the U.S., exacerbated by uncertainties relating to international tariffs. Such factors are projected to lower global demand and impact performance across various sectors.
Market analysts had pointed out earlier on February 26 the potential for bargain hunting as some investors saw opportunities following the KOSPI's dip, particularly among technology stocks. Although some sectors saw slight upticks with financials and industrials managing minor gains, the broader index largely reflected investor jitteriness attributed to global economic conditions.
The fluctuation on the KOSPI paints a broader picture of how interconnected market dynamics are and how global reactions can create ripples within the local economy. Investors remain watchful of the forthcoming days where performance trends will likely exhibit increased volatility as the impact of tariffs and the strength of the AI sector continue to reshape market sentiments.
Looking ahead, the South Korean stock market appears poised for continued fluctuations influenced by international influences and local economic signals. With market movements remaining collaborative, the KOSPI's performance will be pivotal as economic players navigate the turbulent waters of global trade and competition.