New York stocks hit fresh record highs led by semiconductor and technology shares, shrugging off inflation concerns, as Korea’s pre-market opened 1.33% higher on Tuesday. SK hynix (000660.KS) touched the 2 million won mark, while Hyundai Motor (005380.KS) Group shares, which have rallied sharply in recent sessions, showed signs of extending gains. The KOSPI, which closed at 7,844.01 the previous day, is expected to attempt a breakout above the 8,000 level depending on the day’s trading.
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According to Nextrade, the pre-market opened 1.33% higher than the previous trading day. SK hynix briefly posted gains of more than 2%, hovering around the 2 million won level, while Samsung Electronics (005930.KS) rose more than 1% despite news that the government is reviewing an “emergency arbitration order” due to union strike risks. The gains came as expectations grew for an easing of semiconductor export controls on China, with Nvidia CEO Jensen Huang joining US President Donald Trump’s delegation to China. In overnight trading on New York markets, Nvidia rose 2.29% and Micron climbed 4.83%.
Hyundai Motor also jumped more than 4.5%, appearing poised to extend its recent sharp rally. Analysts said the 13%-plus surge in Ford on renewed attention to its partnership with China’s CATL spread positive sentiment across Korea’s automaker and battery value chain.
The shift in market sentiment was driven by strong resilience on New York markets. On Monday (local time), the Nasdaq rose 1.20% and the S&P 500 gained 0.58%, both setting fresh record highs. Although the April producer price index (PPI) rose 6.0% year-on-year, fueling inflation fears, the market focused more on the growth potential of the artificial intelligence (AI) industry and prospects for improved US-China relations than on prices. As a result, six of the Magnificent 7 (M7) stocks closed higher, with Microsoft (-0.63%) the only exception.
On the same day, President Trump will visit China with Big Tech moguls including Tesla CEO Elon Musk, Nvidia CEO Jensen Huang and Apple CEO Tim Cook for a summit with President Xi Jinping. The meeting is expected to include discussions on establishing a consultative body to stabilize trade, raising hopes for easing global supply chain risks.
On the financial stability front, the US Senate’s confirmation of Kevin Warsh as the next chair of the Federal Reserve (Fed) reduced uncertainty. In addition, progress in negotiations with Iran mentioned by Vice President J.D. Vance is expected to ease inflationary pressure stemming from high oil prices.
However, rising Treasury yields remain a risk factor. According to the US Treasury Department, the auction of $5 billion in 30-year US Treasury bonds on Monday produced a yield of 5.046%. It was the first time since 2007, just before the global financial crisis, that the 30-year Treasury auction yield exceeded 5% in the primary market.
“Domestic stocks are expected to open higher today on the back of strength in US AI and semiconductor shares such as Micron and expectations for the US-China summit, despite the April US inflation shock, and a sector rotation with dispersed fund flows is likely,” said Han Ji-young, analyst at Kiwoom Securities. “However, it is necessary to keep in mind that concerns over prices and interest rates have not been fully resolved.”
