South Korea’s benchmark Kospi index posted a 3.5% overnight gain, advancing into technical bull market territory roughly one month following a significant market downturn. The rebound from the July 30 low reached approximately 23%, fueled primarily by strength in the semiconductor sector. Memory chip manufacturers SK Hynix closed up 5.9% and Samsung Electronics gained 4.9%, both benefiting from renewed investor confidence in artificial intelligence infrastructure spending.
Mark Newton of Fundstrat characterized memory shares and Korean equities as the strongest near-term vehicles for risk-on trading positions, noting that memory stocks have outperformed the broader technology sector for the first time since June. However, Newton cautioned that this momentum could face headwinds if Treasury yields and the US dollar appreciate materially.
In energy markets, crude oil prices declined ahead of the US open as the International Energy Agency adjusted its demand forecast downward citing Strait of Hormuz closure concerns. Front-month Brent crude traded down 1.4% to $87.66 per barrel and West Texas Intermediate fell 1.5% to $82 per barrel as of 4:39 a.m. ET. A grounded tanker leaking an estimated 800,000 barrels of sanctioned Russian oil near Oman provided some price support despite the broader demand weakness.
US equity futures showed mixed signals ahead of the open, with technology stocks dominating the most active names. Coherent beat earnings expectations and raised guidance with CEO Jim Anderson citing exceptional customer demand, yet shares declined approximately 3.7% in premarket trading following a recent rally. Intel, Super Micro, and Micron ranked among the most actively traded stocks in premarket activity. Notably, Micron traded marginally lower premarket while diverging from the strength displayed by its Korean memory semiconductor peers.
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