South Korean stocks are expected to open higher on Wednesday, buoyed by a strong overnight performance in U.S. semiconductor and memory-related shares. The KOSPI index pulled back late in Tuesday's session, and with South Korean markets set to close on Thursday for a holiday, the benchmark must hold onto its early gains on solid volume to confirm that the nascent rebound has staying power.
In a trading day led by technology shares, Micron and SanDisk ranked among the top three contributors to gains in the S&P 500. The broad-market benchmark finished flat, but the Philadelphia Semiconductor Index climbed over 2%, while the broader memory chip segment advanced by 4.3%.
With Korean stock index futures moving higher, domestic memory heavyweights are positioned to follow the upward trend. Against a backdrop that favors risk appetite, Nasdaq 100 futures edged up in early Wednesday trading, while WTI crude oil futures extended their decline.
Ahead of the Korean holiday and Micron Technology's earnings release next week, the heavy selling by foreign investors over the past few weeks has left offshore accounts at low levels. These accounts are now gearing up to rebuild positions before quarter-end.
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