The South Korean market is weakening this week against a backdrop of rising long-term U.S. Treasury yields. Samsung Electronics' preliminary July-September results on the 8th and the FOMC minutes on the 7th are in focus.
The South Korean market performed poorly last week as U.S. Treasury yields surged. The U.S. 10-year Treasury yield rose as high as 5.23% during trading hours, setting a new 24-year high. Rising yields pushed up corporate funding costs and discount rates, weighing on the stock market.
Results from U.S. semiconductor giant Micron beat market expectations and provided positive news, but did not provide enough support to significantly cushion the downside in the South Korean market. Among South Korean companies, Samsung Electronics is scheduled to announce its preliminary July-September results on the 8th this week, and some expect movements in the won-dollar exchange rate to affect the outlook. South Korean exports in September rose 84% year on year to $120.9 billion, with semiconductor exports particularly strong, surging 263%.
Upcoming events include the release of the U.S. ISM Services Index on the 5th local time, a speech by John Williams, president of the Federal Reserve Bank of New York, on the 6th, and the release of the September FOMC minutes on the 7th. These indicators and officials' remarks are expected to affect assessments of interest-rate trends and the economic cycle, while attention is also focused on stability in oil prices and U.S. interest rates.
Samsung Electronics and SK hynix are expected to complete their share buybacks shortly. Samsung Electronics has purchased approximately ₩14 trillion to date and currently has approximately ₩900 billion of remaining capacity.