The KOSPI index started rising on the 4th as Samsung Electronics, the market leader in the KOSPI market, showed strong performance. This appears to be influenced by the passage of the 'One Big Beautiful Bill Act (OBBBA)' in Congress, which includes semiconductor tax credits.
At 9:09 a.m. on the 4th, the KOSPI index was at 3120.47, an increase of 4.2 points (0.13%) from the previous day.
In the KOSPI market, Samsung Electronics and SK hynix are showing strength. The OBBBA, which U.S. President Donald Trump is keen on, is positively impacting the market as it is nearing a signature. This bill includes expanding the tax credit rate for semiconductor facility and equipment investments in the U.S. from the existing 25% to 35%.
Conversely, the secondary battery sector has been affected negatively. This is due to the provision in the OBBBA that accelerates the timeline for the elimination of electric vehicle-related tax credits under the Inflation Reduction Act (IRA) from the end of 2032 to the end of September this year.
LG Energy Solution is showing weakness. In addition, among the upper-cap stocks in the KOSPI market, Hyundai Motor, Doosan Enerbility, and Kia are showing an upward trend. Samsung Biologics and KB Financial are trading at lower prices than the previous day.
The KOSDAQ index, which has a significant weighting in the secondary battery sector, is showing weakness as well. At the same time, it recorded a drop of 1.79 points (0.23%) from the previous day, at 791.54.
Among the upper-cap stocks in the KOSDAQ market, Ecopro BM and Ecopro exhibited a decline of around 2%. Alteogen, Peptron, and LigaChem Biosciences are also experiencing falling stock prices. Conversely, HLB, Rainbow Robotics, and PharmaResearch are on the rise.
Overnight, U.S. stocks on the New York Stock Exchange rose due to better-than-expected non-farm payroll employment in June, alleviating concerns about an economic slowdown. The Dow Jones Industrial Average rose by 0.77%. The Standard & Poor's (S&P) 500 index and the Nasdaq increased by 0.83% and 1.02%, respectively.
However, uncertainty remains as President Trump indicated he would send letters specifying tariff rates to various countries starting on the 4th (local time). The mutual tariff exemption period lasts until the 8th.