[Market Outlook] Key to KOSPI Rebound... Focus on Alphabet and SK Hynix Results

This week's domestic stock market will test its potential for a rebound. Market focus will center on Alphabet's AI infrastructure investment plan and SK Hynix's earnings. Last week's domestic market saw fluctuating declines and rallies, with the KOSPI falling 0.1% while the KOSDAQ rose 4.5%. Concerns over semiconductor megacaps persisted, but declines were largely recovered through U.S. price stability and low-price buying inflows. Market participants shifted from individual investors absorbing selling pressure to foreign investors and institutions purchasing major semiconductor stocks. With the won's weakness easing and foreign ownership of Samsung Electronics and SK Hynix hitting historic lows, sustained foreign buying could boost rebound momentum. The U.S. price stabilization also provides positive outlook, as June CPI and PPI figures underperformed expectations, easing concerns over further tightening and reducing cost burdens for AI data center investments. Semiconductor sector concerns eased somewhat, with TSMC recording its largest-ever quarterly revenue and ASML exceeding market expectations with upwardly revised annual forecasts. Demand for AI-driven advanced semiconductors and memory continues, with expansion plans by semiconductor firms showing stronger demand response than supply overcapacity. This week's key focus will be Alphabet's earnings released at 2:00 AM KST on the 23rd, with market attention likely centered on its AI-related capital expenditures (CAPEX) plans. Higher AI infrastructure investment forecasts from Alphabet could alleviate concerns about tech giants' investment slowdown, positively impacting domestic semiconductors, power equipment, and data center equities. Conversely, maintained or reduced AI investment plans could revive recent debates about investment returns, with Alphabet's results potentially serving as a benchmark for long-term demand validation for Samsung Electronics and SK Hynix. SK Hynix's second-quarter earnings scheduled for the 24th will also be critical, as recent forecasts for its annual operating profit have slightly declined from peak levels, with market sentiment potentially shifting based on HBM pricing, demand outlook, and future supply plans.