Korean Stocks

• Market Mood: Cautiously optimistic, with a focus shifting back to AI stock performance after the FOMC.
• The Consensus: The FOMC was less hawkish than feared, providing a tailwind for US equities.
• The Divergence: While major US indices rose, Oracle’s after-hours decline introduces uncertainty into the AI sector, a key theme for the KOSPI.

Global Context & Local Reality

• Macro : Major brokerages note that the US market reacted positively to a less hawkish FOMC, with the Fed maintaining its stance on future rate cuts while acknowledging employment risks. The market is now looking towards upcoming data and Fed communications.
• Street View : Local traders are closely watching the performance of AI-related stocks following Oracle’s mixed earnings and significant after-hours drop. This is tempering the optimism from the FOMC.

Deep Dive: Key Sectors & Themes

1. AI & Semiconductors

• Data: Oracle’s mixed earnings (revenue miss, EPS beat) and significant after-hours sell-off despite positive RPO comments raise concerns about AI sector valuations. However, Nvidia, Broadcom, and Micron showed limited after-hours declines, suggesting a contained impact for now.
• Sentiment: Cautious optimism prevails for major AI players, pending Broadcom’s earnings and Micron’s upcoming results. The KOSPI’s resilience is supported by attractive valuations (low 10s P/E) and improving earnings momentum.

2. KOSPI Resilience

• Data: The KOSPI is recovering towards its 20-day moving average, breaking short-term trend threats. Foreign investors have turned net buyers in December after record selling in November.
• Sentiment: Despite the overall uncertainty, technical and supply/demand factors suggest downside support for the KOSPI. The market is navigating uncharted territory (4,000pt level) but is fundamentally sound.

Verdict: Final Take

“Institutional analysis highlights the positive macro backdrop from the FOMC and the fundamental strength of the KOSPI. However, on-the-ground sentiment is cautious due to the lingering uncertainties surrounding AI stock performance, particularly after Oracle’s earnings.
It’s a dynamic interplay between ‘Macro Relief’ and ‘Sector-Specific Uncertainty’.”

Strategy:
Embrace the broader market strength indicated by institutional analysis, but approach AI-related entries with patience, awaiting clearer signals from upcoming earnings reports (Source B). Monitor foreign investor flows closely, especially around the futures-options expiry.