Korean stocks open low but close higher as strong exports boost dip-buying

TechFlow reports that, on Monday, November 02, bolstered by strong export data that boosted the market's "buy the dip" sentiment, the Korean stock market reclaimed its early losses and turned higher. The KOSPI index rose more than 1% intraday. Weighed down by investor concerns over massive AI corporate spending, Korean equities declined alongside Wall Street, initially slipping nearly 2% in the morning session. Han Ji-young, an analyst at Kiwoom Securities, said, "The market has once again entered oversold territory, while fundamentals remain robust and corporate earnings expectations are also improving.

The better-than-expected October export data has also increased the probability of further upward revisions to consensus earnings estimates. Fueled by strong global demand for artificial intelligence investments, which drove growth in South Korean chip shipments, South Korea's October export value nearly doubled, recording the largest surge in over 50 years. A survey revealed that South Korea's manufacturing activity growth slowed to its lowest pace in eight months in October due to weakening production and demand. South Korean President Lee Jae-myung pledged to make bold investments in artificial intelligence to elevate the country's economic growth potential. (Jinshi)