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KOSPI surges +5.89% to 6,852.58 as semiconductors rebound sharply — morning call missed by a wide margin — Korea Market Daily Wrap, Aug 20, 2026

The KOSPI closed at 6,852.58 on Thursday, August 20 (2026), +5.89% — a session-wide reversal following Wednesday’s steep decline, driven by double-digit gains in SK hynix and Samsung Electronics.Foreigners were net buyers of ₩1,706.8bn on the KOSPI, reversing two prior days of selling, while retail

The Silmari
A daily data newsletter on the Korean stock market — silmari, ‘a clue: the loose end that unravels the knot’
⑥ Final Edition 20:002026.08.20 Thu · No. 17Neutral — sentiment gauge score 0.715; vol20 at 6.05% (94th percentile, confirmed); credit, margin, and short-surge inputs reflect prior-period data only.
⑥ Final Edition · published 20:00 KST · regular session confirmed at 15:30 KST
01 · VerdictRegular session confirmed 15:30 KST

Today’s Verdict

KOSPI surges +5.89% to 6,852.58 as semiconductors rebound sharply — morning call missed by a wide margin

The KOSPI closed at 6,852.58 on Thursday, August 20 (2026), +5.89% — a session-wide reversal following Wednesday’s steep decline, driven by double-digit gains in SK hynix and Samsung Electronics.Foreigners were net buyers of ₩1,706.8bn on the KOSPI, reversing two prior days of selling, while retail investors absorbed ₩2,271.2bn on the other side; the KOSDAQ rose a more modest +1.99% to 840.89.

Key points
01KOSPI closed at 6,852.58 (+5.89%); intraday range spanned 304.46 points (4.61%), with the low of 6,600.09 at 09:08 and the high of 6,904.55 at 13:14.
02SK hynix gained +12.73% on ₩910.96bn turnover; Samsung Electronics rose +9.49% on ₩696.07bn — the two stocks together dominated KOSPI volume.
03Morning call P1 (KOSPI –0.5% to –2.5%) missed; P2 (KOSDAQ +0.5% to +2.0%) was correct at +1.99%.
04Despite the rally, the sentiment gauge remained Neutral (score 0.715); the 20-day volatility input of 6.05% sits at the 94th percentile — elevated structural risk has not dissipated.
Where we stand — close · today · versus the past (each column carries its actual date)
IndexCloseToday1 week ago 08/131 month ago 07/211 quarter ago 05/216 months ago 02/191 year ago 08/20
KOSPI6,852.58+5.89%+0.58%+1.55%−12.32%+20.70%+118.93%
KOSDAQ840.89+1.99%−2.38%+11.62%−23.97%−27.55%+8.14%
02 · Prediction2 calls · posted 07:30 KST

Did our calls hold?

A window grading the morning’s calls against what actually happened

P1 (KOSPI) missed; P2 (KOSDAQ) correct — the morning Philadelphia Semiconductor IndexA US index tracking the performance of 30 semiconductor companies listed on US exchanges, widely used as a global bellwether for chip-sector sentiment.Korea’s top two KOSPI names by turnover are chip makers; overnight SOX moves are a primary input for the morning KOSPI directional model. signal failed to translate into a Korean down day

Of the two morning calls, P1 — KOSPI to fall –0.5% to –2.5% — missed: the index closed +5.89%, an error of roughly eight percentage points at the midpoint.P2 — KOSDAQ to rise +0.5% to +2.0% — was correct; the KOSDAQ closed +1.99%, near the top of the projected band.

Direction hit
1/2
50% · direction only
Magnitude hit
1/2
50% · scored on closing inside the band
Alert · 3 points
✓ Realised
3+ = crash alert · 2+ = caution (small sample)
Call ① KOSPIThe KOSPI is more likely to fall
Band -0.5~-2.5% · full day
Actual+5.89%· verdict ✗
Morning rationaleSOX -2.12% Next-day avg -2.44% (upside odds 37%), foreign continuous selling autocorr +0.487·today buy odds 4%, morning reversal volume concentration — but yesterday -5.80% plunge technical bounce may cap downside upper band (-2.5%)
Call ② KOSDAQThe KOSDAQ is more likely to rise
Band +0.5~+2.0% · full day
Actual+1.99%· verdict ✓
Morning rationaleTesla +4.23% (next-day KOSDAQ +2.82%·upside 73%), potential repeat extreme divergence from KOSPI yesterday, institutional·foreign KOSDAQ supply defense continues

No separate sector-level or individual-stock predictions were filed for today’s session.

03 · TraceKRX confirmed prices · times measured from minute bars

The day’s path

A window retracing where the index travelled from open to close

KOSPI opened near 6,672, dropped to 6,600.09 at 09:08, then climbed steadily to a high of 6,904.55 at 13:14 before consolidating to close at 6,852.58 — a recovery arc that spanned the full session.

KOSPI open · high · low · close6,680.34 · 6,904.55 (13:14) · 6,600.09 (09:08) · 6,852.58
KOSDAQ open · high · low · close843.99 · 850.77 (09:04) · 834.69 (14:12) · 840.89
04 · Fund flowsIn Korean won · KRX

Who bought and who sold —4 investorgroups ×4periods

A window on how much foreign investors, retail investors, investment firms and pension funds each bought and sold

Foreigners net bought ₩1.71tn on KOSPI today, reversing Wednesday’s selling, while retail investors absorbed the other side with ₩2.27tn in Net SellingThe total value of shares sold by an investor category minus the total value bought in the same session — the mirror of net buying.When retail investors net sell into a foreign net-buying day, it often signals a sentiment divergence worth tracking..

KOSPI net buying — today · 1 week · 1 month · quarter (in Korean won)
Investor groupToday1 week 08.13~08.201 month 07.21~08.20Quarter
Foreign investors+₩1.71tn+₩3.47tn+₩691.6bn−₩68.56tn
Retail investors−₩2.27tn−₩1.62tn−₩1.37tn+₩53.83tn
Pension funds−₩181.6bn−₩214.1bn+₩523.4bn−₩2.65tn
Investment firms−₩317.7bn−₩2.79tn−₩1.77tn+₩14.89tn
01

Foreigners net bought ₩1,706.8bn on the KOSPI today — a reversal from the one-week cumulative position, where they remain net buyers of ₩3,474.5bn over the August 13–20 window.In the futures market, foreign accounts were net sellers of 6,978 contracts on August 20, diverging from their cash-market buying — a split that, in the 2026 dataset (153 sessions), has historically attracted closer scrutiny than either signal alone.

02

Retail investors sold a net ₩2,271.2bn on the KOSPI today, absorbing the foreign buying; over the trailing one month they are net sellers of ₩1,367.5bn.The cross-lag data for the 2026 regime (153 sessions) shows a same-day correlation of –0.85 between foreign Net PurchaseThe total value of shares bought by an investor category minus the total value sold in the same session.Identifies which investor group is the marginal buyer or seller driving price. and retail net buying — today’s pattern fits that relationship closely.

03

The National Pension Service sold ₩181.6bn on the KOSPI today and is a net seller of ₩214.1bn over the trailing one month; the one-month picture does show a net purchase of ₩523.4bn from the pension fund.Brokerages sold₩317.7bn today and remain the heaviest institutional sellers over the past month at –₩1,774.4bn and over the week at –₩2,794.4bn.

04

KOSDAQ investor-flow data is not available from today’s collection — the data source supports KOSPI only for the daily and weekly periods.The KOSDAQ’s +1.99% gain against the KOSPI’s +5.89% suggests the semiconductor-driven bounce was a KOSPI-specific event; Alteogen (+11.86%) and Jusung Engineering (+3.32%) were among KOSDAQ advancers.

05

Over the quarter (May 20 – August 20, 2026), foreigners are net sellers of ₩68,556.3bn on the KOSPI — a structural outflow that makes today’s single-session reversal of ₩1,706.8bn a small offset against the quarterly trend.Retail investors have purchased ₩53,826.3bn net over the same quarter, effectively absorbing the foreign selling; institutional accounts are collectively net buyers of ₩11,874.9bn over the quarter, led by brokerages at +₩14,891.1bn.

Foreign investors → retail · KOSPI (same-day correlation)Retail investors-0.85 (moves almost exactly opposite)· KOSPI0.519 (tends to move in the same direction)
Investment firms → retail · KOSPI (same-day correlation)Retail investors-0.618 (moves almost exactly opposite)· KOSPI0.6 (moves almost in lockstep)
Pension funds → retail · KOSPI (same-day correlation)Retail investors-0.18 (no clear relationship)· KOSPI0.01 (no clear relationship)
How to read the correlationCloser to +1 means they moved together; closer to −1 means they moved opposite — measured in the current regime (2026)
05 · Fear gaugeStanding gauge8 components · percentiles based on the current regime (2026)

Silmari Fear Gauge — past and present

A window measuring market anxiety through volatility, margin lending and short selling

The sentiment gauge held at Neutral (score 0.715) even as the KOSPI surged +5.89% to 6,852.58, with the 20-day volatility reading at the 94th percentile.

Volatility percentile
94
0–100 · higher means more warning · based on the current regime (2026).
Margin balance, 5-day change4.24 — Change in Leveraged Purchases — Larger increases create greater forced liquidation pressure on declines ·As of 08.19
Forced-liquidation share0.6 — Share of Forced Liquidations — Higher ratio signals greater mechanical selling pressure ·As of 08.19
Short-interest surge multiple19.06 — Short bets multiplied how many times in 5 days — Steep surge is a warning signal ·As of 08.14
Retail buying intensity on down days0.0 — N/A — Not a down day (5.89%)
Consecutive no-trigger down days0.0 — N/A — No-trigger declines did not continue
KOSPI 20-day realised volatility6.05 Risk · top 6%· Recent 1-month volatility size — dashboard’s core metric

The sentiment gauge scored 0.715 today, placing it in the Neutral stage (expanding-window percentile thresholds: 10/35/65/90).The only confirmed today-dated input is vol20 at 6.05%, which sits at the 94th percentile — the single component with the highest weight in the composite (0.225).

The credit-balance five-day change was 4.24% (as of August 19, T+1 release); margin ratio was 0.6 (as of August 19); short-surge ratio was 19.06% (as of August 14, T+2 release) — all inputs reflect prior-period data, not today’s confirmed figures.The panic-buying-on-down-day and no-trigger-streak inputs are marked not applicable because today was an up day (+5.89%).

Past pattern vs today
MeasureToday’s valueBasisWhere today sits
Retail buying intensity on down days0.0Current regime (2026) percentile69(top 31%)
KOSPI 20-day realised volatility6.05Current regime (2026) percentile94(top 6%)
Consecutive no-trigger down days0.0Current regime (2026) percentile86(top 14%)

Today is a trigger day — the KOSPI rose +5.89%, snapping what had been a down sequence; the no-trigger streak resets to zero.The crash-precursor score of 3 (Advance-Decline RatioThe number of advancing stocks divided by the number of declining stocks in a given market on a given day.An extreme ADR reading — very high or very low — is one of the five sub-signals in the crash-precursor score. contributing 2, short-surge 1) reflects lagged data: the ADR reference is the US session of July 28 (2026) at –16.7%; sell-acceleration draws on August 18–19 confirmed flows.

The gauge’s Neutral reading on a +5.89% day illustrates that a sharp rally does not by itself reduce the structural risk flags embedded in the vol20 and short-surge inputs — both reflect conditions that predate today’s session.The judgment is each reader’s own.

The eight inputs to the gauge are: (1) five-day change in credit-balance loans (weight 0.135), (2) margin ratio (0.18), (3) panic-buying on down days (0.09), (4) short-surge ratio (0.18), (5) 20-day realised volatility (0.225), (6) no-trigger-streak count (0.09), and (7) single-stock Single-Stock Leverage ETFAn ETF that delivers a multiple (typically 2×) of the daily return of a single underlying stock, used here to gauge retail speculative activity.The share of leverage ETF turnover in total market turnover is one of the seven inputs to the sentiment gauge. share of turnover (0.10) — scores are combined as a weighted average of expanding-window z-scores to prevent look-ahead bias; a news-fear keyword count is computed as reference only and is not included in the composite.

The judgement is yours.

06 · Short interestBalance · surges · subsequent returns

Short sellingSelling borrowed shares first, betting the price will fall.A rising balance means more money is betting on a decline.balance — the pattern of surges

A window on the stocks whose short balance rose or fell, and what happened afterwards

SK hynix’s short-surge signal from August 13–14 sits within a 2026-regime sample where 117 such events averaged –0.22% over the following five days, with a 50% probability of a down move.

Kumho E&C surge 2.3x (20260812)1d−3.75%· 3d−6.56%· 5d+4.82%
SK Hynix surge 4.7x (20260813)1d+3.26%· 3d−5.84%· 5 days None
Kumho E&C surge 5.1x (20260813)1d−6.75%· 3d−12.32%· 5 days None
Hana Micron surge 3.6x (20260813)1d−0.14%· 3d−0.14%· 5 days None
Samwha Capacitor surge 2.3x (20260814)1d−5.44%· 3d−5.24%· 5 days None
SK Hynix surge 15.4x (20260814)1d+1.03%· 3d+2.80%· 5 days None

The most recent short-surge signals in the data involve SK hynix (surged 4.7× on August 13 and 15.4× on August 14) and Kumho Construction (surged 2.3× and 5.1× on August 12–13).In the current 2026 regime, across 117 short-surge events (defined as short balance doubling in five sessions with a base of at least 50,000 shares), the average five-day return was –0.22% with a 50% probability of a down move; the 2026 baseline for any five-day period is +2.76%, so the excess return from a short-surge event in this regime is –2.98 percentage points — short-surge signals have historically underperformed the regime base rate in 2026.

07 · Sector mapToday’s move · leaders · flows · relative strength

Where the money moved —12sectors

A window on where money moved from and to, by sector

Semiconductors surged +6.6% as the sector’s dominant names — SK hynix (+12.73%) and Samsung Electronics (+9.49%) — carried the KOSPI to a +5.89% close at 6,852.58, even as financials (−1.69%), construction (−2.00%), and energy/chemicals (−1.51%) declined.

12 sectors × day’s gain/loss · leading stocks (top 5 by market cap + trading value, system-selected) · fund-flow direction · relative strength · Source: closing prices for the day (pack “Daily Prices (all issues)”) — exchange sector aggregates recalculated for missing data · 1-week relative strength unavailable via alternative feed and left blank in this edition — will be filled once exchange data collection resumes
SectorTodayFlowsRelative (1w)Leaders
Semiconductors+6.60%BuyingSK hynix+12.73%· Samsung Electronics+9.49%· Samsung Electro-Mechanics+0.65%· SK Square+11.85%· Jusung Engineering+3.32%
AI & Software+3.80%BuyingNAVER +5.53%· Kakao+3.48%· DearU+2.39%
Power & Electrical+0.03%SellingLS ELECTRIC −1.39%· Doosan Enerbility−0.39%· HYOSUNG Heavy Industries−1.75%· HD Hyundai Electric−0.80%· Gaon Cable+4.50%
Electronics & Components+3.32%BuyingSamsung Electronics (Pref.)+10.07%· Samsung SDI+2.57%· LG Electronics+0.50%· LG Energy Solution+0.14%
Autos−0.32%BuyingHyundai Motor+0.85%· Kia−1.43%· Hyundai Mobis−0.39%
Defense & Aerospace−0.91%BuyingHanwha Aerospace−0.85%· LIG Defense & Aerospace−1.13%· Korea Aerospace Industries (KAI)−0.74%
Shipbuilding & Shipping−1.21%BuyingHanwha Ocean+0.45%· HD KSOE (Korea Shipbuilding & Offshore Engineering)−1.77% · HMM −2.30%
Financials−1.69%SellingKB Financial Group−3.85%· Hana Financial Group−3.22%· Shinhan Financial Group−3.71%· Mirae Asset Securities+4.03%
Bio & Healthcare−0.65%BuyingAlteogen+11.86%· Kolon TissueGene−16.41%· Samsung Biologics+1.94%· Celltrion+0.00%
Construction & Infrastructure−2.00%SellingHyundai E&C−2.32%· Daewoo E&C−2.85%· DL E&C−0.84%
Energy & Chemicals−1.51%SK Innovation−2.33%· LG Chem−0.75% · S-Oil −5.94%· Lotte Chemical+2.98%
Consumer & Entertainment+0.56%SellingSK Telecom−1.43%· HYBE+0.70%· CJ CheilJedang+2.61% · JYP Ent. +0.38%
Historical contextMoney rotated sharply into semiconductors and away from defensive and rate-sensitive names: foreign net buying in SK hynix reached ₩529.2bn and in Samsung Electronics ₩1,133.1bn, while financials — led by KB Financial (−3.85%), Shinhan Financial (−3.71%), and Hana Financial (−3.22%) — saw foreign net selling of ₩13.7bn in KB Financial alone.Power and electric equipment (sector +0.03%) and defense/aerospace (−0.91%) — sectors that led the market on multiple prior sessions — underperformed the KOSPI by a wide margin today, consistent with a rotation back toward semiconductor-led growth names after Wednesday’s −5.80% drop.The biotech sector posted a mixed result (sector −0.65%): Alteogen surged +11.86% with ₩336.7bn in turnover, while Kolon TissueGene fell −16.41% on ₩178.1bn in volume, leaving the sector’s net direction negative on the day.AI/software advanced +3.8% with NAVER up +5.53%, benefiting alongside semiconductors from overnight news of Google’s AI chip deal with Marvell; the consumer/entertainment sector eked out +0.56% but saw foreign net selling in SK Telecom (₩25.1bn sold).Sector-level relative-strength figures for the one-week and one-month periods were not recalculated in today’s data and are therefore not available for comparison.
08 · Top 10Close · change · flows by four investor groups

The stocks that moved the market — top by turnover10

A window on which investor groups backed the most heavily traded stocks

SK hynix (₩910.96bn turnover, +12.73%) and Samsung Electronics (₩696.07bn, +9.49%) together accounted for the top two KOSPI turnover slots by a wide margin.

SK hynix (₩910.96bn) and Samsung Electronics (₩696.07bn) together accounted for approximately half the total KOSPI turnover implied by the top-ten list, with Samsung Electro-Mechanics a distant third at ₩106.28bn.On the KOSDAQ, Alteogen led at ₩336.7bn, followed by Ingenium Therapeutics (Reg.S) at ₩297.0bn and HPSP at ₩251.5bn — the KOSDAQ list shows more dispersion than the KOSPI, which was heavily concentrated in two names.

Top 10 by turnover (KOSPI)
StockCloseChangeTurnoverForeign investorsInstitutionsInvestment firmsPension fundsRetail investors
SK hynix₩1,691,000+12.73%₩9.11tn+₩539.3bn−₩24.1bn−₩211.8bn+₩20.1bn−₩1.55tn
Samsung Electronics₩271,000+9.49%₩6.96tn+₩1.14tn+₩159.3bn−₩86.3bn−₩23.5bn−₩1.27tn
Samsung Electro-Mechanics₩1,396,000+0.65%₩1.06tn−₩230.9bn−₩104.0bn−₩53.5bn−₩49.8bn+₩327.8bn
SK Square₩1,123,000+11.85%₩927.6bn+₩77.1bn−₩18.7bn−₩8.5bn+₩3.6bn−₩56.5bn
Samsung Electronics (Pref.)₩191,200+10.07%₩674.5bn+₩49.3bn+₩71.3bn+₩16.1bn+₩11.5bn−₩121.7bn
SK eternix₩56,000−3.11%₩394.2bn−₩13.8bn−₩16.9bn−₩7.0bn+₩2.5bn+₩32.1bn
Kumho E&C₩15,650+24.21%₩390.6bn+₩6.5bn+₩0.9bn+₩0.3bn+₩0.1bn−₩6.2bn
Hanwha Aerospace₩1,167,000−0.85%₩295.9bn+₩16.4bn+₩7.1bn+₩13.0bn−₩4.3bn−₩22.4bn
NAVER₩219,500+5.53%₩210.5bn+₩41.7bn+₩16.3bn−₩0.1bn+₩14.6bn−₩57.4bn
KB Financial Group₩160,000−3.85%₩206.9bn−₩13.8bn−₩43.0bn−₩23.9bn−₩11.7bn+₩56.3bn
Historical contextForeign investors / institutions / investment firms / pension funds / retail investors · figures in Korean won · Source: KRX
09 · Up 5 · Down 5Reason labels: [News] confirmed · [Pattern] inferred

Gainers5· Decliners5KOSPI & KOSDAQ

A window on the biggest gainers and decliners, and the reasons behind them

KOSPI breadth data was not collected for August 20; the prior session (August 19) showed 171 advancers against 703 decliners, making today’s broad-based advance a sharp reversal in character.

KOSPI
Gainers · relative strength5 (KOSPI)
Kumho Electric+29.97%[Pattern]Turnover ₩59.4bn · machine ranking
SK Securities+29.79%[Pattern]Turnover ₩28.9bn · machine ranking
Samyang Biopharm+29.79%[Pattern]Turnover ₩12.1bn · machine ranking
Kumho E&C+24.21%[Pattern]Turnover ₩390.6bn · machine ranking
Mirae Asset Life+15.40%[Pattern]Turnover ₩23.5bn · machine ranking
Decliners5 (KOSPI)
DN Automotive−13.77%[Pattern]Turnover ₩33.9bn · machine ranking
IndiEF−11.09%[Pattern]Turnover ₩11.1bn · machine ranking
ZI&D−6.79%[Pattern]Turnover ₩17.4bn · machine ranking
S-Oil −5.94%[Pattern]Turnover ₩39.9bn · machine ranking
LS −5.86%[Pattern]Turnover ₩72.1bn · machine ranking
KOSDAQ
KOSDAQGainers5
Ingenia Therapeutics (Reg.S)+30.00%[Pattern]Turnover ₩297.0bn · machine ranking
The Dozen+26.05%[Pattern]Turnover ₩26.1bn · machine ranking
ITC Global+22.70%[Pattern]Turnover ₩48.3bn · machine ranking
Genexine+20.97%[Pattern]Turnover ₩10.0bn · machine ranking
Naivec+19.82%[Pattern]Turnover ₩31.4bn · machine ranking
KOSDAQDecliners5
April Bio−19.20%[Pattern]Turnover ₩26.0bn · machine ranking
Kolon TissueGene−16.41%[Pattern]Turnover ₩178.1bn · machine ranking
Hwashin Precision−15.71%[Pattern]Turnover ₩39.9bn · machine ranking
GNC Energy−8.74%[Pattern]Turnover ₩42.2bn · machine ranking
Justek−8.34%[Pattern]Turnover ₩14.5bn · machine ranking

KOSPI breadth data for August 20 was not collected due to a data-availability issue; the prior session (August 19) showed only 171 advancers against 703 decliners (ADR 0.24), with a top-10 concentration ratio of 67.5%.On the KOSPI leaderboard today, the up-move list is dominated by semiconductor and broker names (SK hynix +12.73%, SK Square +11.85%, Samsung Electronics +9.49%), while the decliners list is led by DN Automotive (–13.77%) and financials/energy stocks — suggesting the rally was not uniformly broad.

Historical contextSelection criteria: trading volume ₩1B+ · change % automated ranking · source: Naver Finance (exchange data collection limited—alternate source).
10 · KOSDAQ windowKOSDAQ: close 840.89 · +1.99% · high 850.77 (09:04) · low 834.69 (14:12) · range 16.08 pts (1.93%) — investor flow data not collected for today

The SilmariDecouplingWhen two markets that used to move together break apart and move separately.The wider the gap, the less any single index can tell you about the market.Gauge

A window on the pattern in the KOSPI–KOSDAQ decoupling

The KOSDAQ rose +1.99% to 840.89, gaining ground but lagging the KOSPI’s +5.89% by 3.90 percentage points — a significant divergence on a strong up day.

KOSPI · KOSDAQ close6,852.58 · 840.89
Today’s change+5.89% · +1.99%
Today’s gap (KOSPI − KOSDAQ)+3.90%p— 2%p or more, meets the promotion threshold
Year to date+59.01% · −11.07%
Silmari Decoupling Gauge — year-to-date gap+70.08%p
Foreign net buying — KOSPI · KOSDAQ+₩1.71tn · None
Retail net buying — KOSPI · KOSDAQ−₩2.27tn · None
Investment firms’ net buying — KOSPI · KOSDAQ−₩317.7bn · None
Pension funds’ net buying — KOSPI · KOSDAQ−₩181.6bn · None

The KOSDAQ closed at 840.89 (+1.99%), lagging the KOSPI’s +5.89% by 3.90 percentage points — the gap reflects the KOSPI’s heavy concentration in large-cap semiconductor names that drove most of the index gain.KOSDAQ investor-flow data was not collected for today; on a stock-by-stock basis, Alteogen (+11.86%) and Ingenium Therapeutics (+30.00%) were notable advancers, while Kolon TissueGene (–16.41%) was the session’s most active decliner.

11 · RotationK0 three-tier basis

Semiconductors → defensives, and back — by regime

A window on the pattern in sector rotation — money circulating from one sector to another

Today does not qualify as a defensive rotation day: semiconductors surged (+12.73% SK hynix, +9.49% Samsung Electronics) rather than declining the required 2.0%+.

Reversion within three days of a flight from semiconductors to defensives
RegimeReversion rate · sample
① Old order (2018–24)Average−0.84%· rose 45% of the time · 69 past cases
② Transition (2025)Average+1.70%· rose 71% of the time · 17 past cases
③ Current regime (2026–)Average+2.05%· Up 69% · 32 times previously

A day when semiconductors (the average of SK hynix and Samsung Electronics) fall 2.0% or more while defensives (bio, food & beverage) outperform by 2.0%p or more = rotation (a flight)

Today does not qualify as a defensive rotation event under the data definition (semiconductor average down ≥2.0% plus defensives outperforming by ≥2.0pp): SK hynix rose +12.73% and Samsung Electronics +9.49%.For reference, in the 2026 regime, the 32 past rotation events were followed three days later by an average return of +2.05% with a 69% up-probability — but that base rate does not apply today as the trigger condition was not met.

12 · ADR alertAlert tier · not a probability

The night makes the morning —American Depositary Receipt (ADR)A twin of a Korean stock, listed on a U.S. exchange.It prints overnight, showing how U.S. investors price Korean stocks before Seoul opens.crash detection

A window on how U.S.-listed Korean stocks moved overnight

The crash-precursor score stood at 3 out of a possible maximum, driven by two ADR sub-signals and one short-surge sub-signal, with sell-acceleration and sentiment sub-signals at zero.

Precursor score3
ADR2(available: 2026-07-28 U.S. session -16.7%)
Short-interest surge1(available: —)
Selling acceleration0(available: 2026-08-18 · 2026-08-19 confirmed flows)
Sentiment 90+0(available: —)

The crash-precursor score of 3 reflects two ADR sub-signals (referenced from the US session of July 28, 2026, at –16.7%) and one short-surge sub-signal (short-balance data as of August 14, T+2 publication); the sell-acceleration and extreme-sentiment sub-signals are both zero.A score of 3 is a partial reading — two of the five signal categories are active — and should be interpreted alongside the lagged data dates: the ADR input is now more than three weeks old, and the short-surge input is six sessions old; neither is a fresh confirmation.

13 · Tonightas of 19:55 KST on 2026-08-20

Tonight — the U.S. session about to open

S&P 500 futures +0.21% and Nikkei futures +0.58% point to a steady open, but the SOX’s prior –2.12% and hawkish FOMC minutes leave the direction of US semiconductor stocks as tonight’s primary watch.

S&P 500 futures (05:00 KST)7,730.5, +0.21% from prior Korea close; Nasdaq 100 futures flat at 29,561.
FOMC minutesJuly minutes showed a majority discussed rate hikes if inflation does not cool; 10-year yield was 4.65% as of August 19.
Semiconductor read-throughSOX was –2.12% on August 19; Korea semiconductor names surged today (+12.73% SK hynix) — whether US chip stocks reprice tonight is the key watch item.
14 · Cross-followingMeasured in 2026

Korea–U.S. mutual following — overnight grading

A window on which market followed which

The prior night’s SOX fell –2.12% yet the KOSPI closed +5.89%, making today a clear divergence from the prevailing US-leads-Korea pattern seen in 39 of 139 sessions year-to-date in 2026.

The SOX fell 2.12% on August 19, which our morning model read as a bearish signal for Korea; the KOSPI instead gained +5.89%, making today a case where Korea diverged from, rather than followed, the prior night’s US semiconductor signal.The Nikkei 225 closed at 66,216.79 (+1.36% as of August 20), providing a partial regional tailwind; the iShares MSCI South Korea ETFA US-listed exchange-traded fund tracking MSCI’s South Korea index, used as a proxy for how foreign investors price Korean equity risk in real time.EWY’s prior-day move often anticipates or confirms the direction of foreign net buying in the KOSPI the following session. (Korea ETF) closed at 174.43 (+2.58%) as of August 19, suggesting foreign positioning had already begun to shift before today’s session.

In 2026 year-to-date (139 sessions), Korea has followed the US 39 times, the US has followed Korea 30 times, bidirectional follow-through occurred 46 times, and 24 sessions showed no clear follow-through in either direction.Today falls into the no-follow or Korea-leads category — the prior SOX signal did not translate into the expected KOSPI direction, which has now happened in at least 24 sessions this year where neither market led the other cleanly.

Days Korea followed the U.S.39 days
Days the U.S. followed Korea30 days
Both ways46 days
Sample139 days

Overnight SOX ↔ same-day KOSPI in the same direction (|SOX| ≥ 0.5%) = Korea following · same-day KOSPI ↔ that night’s SOX in the same direction (|KOSPI| ≥ 0.5%) = the U.S. following

15 · FX windowas of 19:55 KST on 2026-08-20

The won — the signal is the speed of the move, not its direction

A window on the pressure the won-dollar rate puts on foreign flows

The won-dollar rate stood at ₩1,394.3 and the dollar index at 98.58, while the yen-won cross was 880.57 per 100 yen, as of the latest accumulated reading.

Won-dollar₩1,394.3 (accumulated strip — no intraday figure collected today)
Yen-won (100 yen)₩880.57
Dollar index (DXY)98.58 (strip) / 98.64 spot as of August 20 (–0.19%)

The won-dollar rate stood at ₩1,394.3 and the dollar index (DXY) at 98.58, with the yen at 880.57 won per 100 yen, according to the accumulated strip data; a separate intraday won-dollar reading for today was not collected.The dollar index (spot) was 98.64 as of August 20, down 0.19% on the day — a mild dollar softening that is consistent with a risk-on environment, though the data does not establish a causal link to today’s equity move.

16 · Rates windowas of 19:55 KST on 2026-08-20

Rates — a weaker link than commonly assumed

A window on the burden rates and bonds place on equities

The US 10-year Treasury yield was 4.65% as of August 19, down 1.13% on the day, after the July FOMC minutes flagged that a majority of officials discussed the possibility of further rate hikes if inflation does not cool.

US 10-year yield4.65% (as of August 19, –1.13% on the day)
S&P 500 (prior close)7,707.98 (+0.21% August 19)
SOX (Philadelphia Semiconductor Index)11,738.23 (–2.12% August 19)

The US 10-year Treasury yield was 4.65% as of August 19, down 1.13% on the day after the Treasury announced a debt-buyback programme that provided some relief to the long end.The July FOMC minutes, released Wednesday night KST, showed a majority of officials discussed the possibility of rate hikes if inflation does not cool — a hawkish nuance that limited the yield rally; after-hours reporting noted yields edged higher as traders continued to digest the buyback plan.

17 · ReferenceCondensed · reference

Reference — brokerages, Wall Street and the windows

A window collecting brokerage research and overseas news

No brokerage reports were retrievable for today; the Wall Street scoreboard stands at 15 hits in 28 tracked calls (54%) across nine banks over a 3-session horizon.

Indicator strip — overseas indices, FX and commodities
EWY (Korea ETF)174.43 (+2.58%· as of 2026-08-19)
Nikkei 22566216.79 (+1.36%· as of 2026-08-20)
Dollar index98.64 (−0.19%· as of 2026-08-20)
U.S. 10-year Treasury4.65 (−1.13%· as of 2026-08-19)
Nasdaq26331.09 (+0.16%· as of 2026-08-19)
SOX semiconductors11738.23 (−2.12%· as of 2026-08-19)
S&P5007707.98 (+0.21%· as of 2026-08-19)
The brokerages’ view — named research

No brokerage research reports were retrievable for today’s session — the data source (Naver Research) provides only current-window reports, and no same-day reports were captured during the collection run.

Wall Street scoreboard

15 of 28 calls correct (54%) — measured three trading days after publication.

Morgan Stanley3/4 — negative (2026-07-13) warned semiconductors were overbought, citing the precedent of a memory winter
Macquarie1/3 — positive (2026-05-15) Macquarie raised its SK hynix price target to ₩2.9m, citing long-term contracts at up to 50% of the mix
UBS1/1 — positive (2026-01-13) UBS raised its SK hynix price target to ₩1m
Goldman Sachs3/5 — positive (2026-06-03) “The KOSPI has another 37% to run” — Goldman Sachs raised its KOSPI target to 12,000
Citigroup2/3 — positive (2026-06-14) Citigroup raised its KOSPI target to 10,000 and kept its bullish view
J.P. Morgan0/3 — positive (2026-06-25) J.P. Morgan raised its 12-month KOSPI target to 12,500 and urged a maximum weighting in Korean equities
Nomura4/6 — positive (2026-06-24) Nomura lifted its Samsung Electronics target from ₩590,000 to ₩670,000
Barclays0/2 — positive (2026-07-23) price target $330, implying 117% upside
Bernstein1/1 — positive (2026-06-22) Bernstein raised targets for Samsung Electronics, SK hynix and Micron, noting that rising memory prices are squeezing AI costs
Recent IB calls — collected, not yet graded

The Wall Street scoreboard tracks directional calls published by nine banks over a rolling three-session horizon; a call is scored as a hit if the market moved in the predicted direction within three sessions of the publication date. The current tally stands at 15 hits out of 28 tracked calls (54% overall), with Nomura leading at 4/6 and Goldman Sachs at 3/5; JP Morgan and Barclays have each recorded zero hits in their tracked calls.

Korea’s sovereign AI — measured timeline
Event density
01 · MacroUS Treasury announces T-bond purchase plan; NY bond yields fall, stocks edge up (Yonhap Int’l)
02 · MacroJuly FOMC minutes released — Many officials discuss rate hikes if inflation persists (Yonhap Int’l / CNBC)
03 · Industry structureGoogle, Marvell form AI chip alliance — Up to $12.2B warrant deal (Yonhap Int’l / CNBC)
04 · PolicyTrump criticizes Fed rate policy — argues US should have much lower rates (CNBC)
05 · Industry structureOpenAI CFO confirms IPO plan for next year — Says fine if later than Anthropic (Yonhap Int’l)
06 · MacroUS national debt surpasses $40T — interest burden weighs on high rates (Yonhap Int’l)
07 · Industry structureChina smartphone makers hit by chip shortage in India — Apple, Samsung expand share (CNBC)
08 · Industry structureJapan July exports up 5 consecutive months on strong chip shipments — beats expectations (CNBC)
09 · Industry structureItochu invests trillions of won to build 10 data center facilities (Yonhap Int’l)
10 · Industry structureS. Korea-China robot firms explore tech and supply chain cooperation in China (Yonhap Int’l)
11 · Macro (After Close)US T-bond yields inch higher as markets digest bond purchase plan (CNBC After Close)
Media headlines

Today’s event calendar items overlap with the macro and rates blocks above — the July FOMC minutes (majority discussed rate hikes), the Treasury debt-buyback plan (yields lower initially, then edging higher after hours), and Google’s AI-chip alliance with Marvell (up to ₩17tn in share warrants) were the pre-market headlines most relevant to today’s session.

For individual company details — SK hynix, Samsung Electronics, Samsung Electro-Mechanics, NAVER, Alteogen, Jusung Engineering — see the Top Ten and Up-Down blocks; no analyst report data is available for today.

18 · Closingas of 19:55 KST on 2026-08-20

Closing today, on to tomorrow

A window that closes today and hands over to tomorrow

Semiconductor ReboundForecast MissForeign Reversal
Summary by topic
KOSPI close6,852.58, +5.89% — opened at 6,680.34, touched an intraday low of 6,600.09 at 09:08 before rallying to a high of 6,904.55 at 13:14.
KOSDAQ close840.89, +1.99% — lagged the KOSPI by 3.90 percentage points; intraday low 834.69 at 14:12, high 850.77 at 09:04.
Net flows (KOSPI, today)Foreigners +₩1,706.8bn, retail –₩2,271.2bn, institutions –₩489.5bn; the National Pension Service sold –₩181.6bn, brokerages –₩317.7bn.
Sentiment gaugeScore 0.715, stage Neutral; vol20 at 6.05% (94th percentile confirmed); credit, margin, and short-surge inputs reflect prior-day or T+2 data, not today.
Crash-precursor score3/maximum — two ADR sub-signals and one short-surge sub-signal active; sell-acceleration and extreme-sentiment sub-signals at zero.
Today’s lesson

The morning call on the KOSPI (P1: –0.5% to –2.5%) missed decisively — the index closed +5.89% — a reminder that a prior-night SOX decline does not override short-covering momentum after an extreme drawdown day; the KOSDAQ call (P2: +0.5% to +2.0%) was correct at +1.99%.

The U.S. session about to open
S&P 500 futuresS&P 500 futures were up +0.21% at 7,730.5 as of 05:00 KST; in 2026 YTD, 39 of 139 sessions saw the US follow Korea’s lead, so a mild positive open is plausible but not assured.
FOMC minutes watchThe July FOMC minutes showed a majority discussed rate hikes if inflation does not cool — bond yields edged higher after the close; the 10-year was 4.65% as of August 19.
Semiconductor read-throughThe SOX fell –2.12% on August 19; tonight’s reaction to Korea’s semiconductor surge (+12.73% SK hynix) may be a key data point, given that in 2026 YTD Korea has led the US in 30 of 139 sessions.
Source: Korea Exchange ·Nextrade (Alternative Trading System)Korea’s first alternative trading system, launched in 2026, operating pre-market and after-market sessions alongside the KRX main board.NXT after-hours data provides an early read on order flow that is not captured in KRX closing prices.· Actual · Regular session 15:30 close · Compiled by Editorial Team.
This edition organises and explains publicly available market data. It is not investment advice. Predictions and their scores are preserved without revision — the judgement is yours.