Following the previous week’s simultaneous decline in global equity markets due to rising tensions in the Middle East and concerns over prolonged high interest rates, investors will be paying close attention this week as major South Korean and U.S. big tech firms release their third-quarter earnings reports.

In the Korean stock market, LG Energy Solution and LG Display are set to announce their earnings results on October 25, followed by SK hynix, Samsung SDI, and Hyundai Motor on October 26, and Kia and LG Electronics on October 27. Observations indicate that the semiconductor industry is poised for a recovery in the second half of the year after overcoming a period of stagnation. The automotive sector is also expected to see substantial profit growth, driven by strong sales of lucrative vehicle segments such as eco-friendly cars and sports utility vehicles.

But in the electronic components industry, persistently weak demand in the information technology (IT) sector has led to diminished business performance expectations. Within the battery sector, the impact of a contracting electric vehicle market and declining selling prices could lead to varying outcomes for different companies, depending on their individual customers.

In the New York stock market, investors await earnings releases from major big tech companies. Starting with Microsoft and Alphabet on October 24, followed by Meta on Oct. 25, and Amazon on Oct. 26, these corporations are expected to report strong third-quarter results. Analysts believe that a positive report from these tech giants could boost not only Nasdaq but the Korean stock market as well.

Meanwhile, the AI-based stock risk management index “Boom & Shock Index,” developed collaboratively by Maeil Business Newspaper and Qraft Technologies, recently saw a revision of risk levels in both its U.S. and Korean version. This adjustment is based on external factors that have the potential to disrupt market fundamentals. The Korean version of the index has risen from 4 to 13, indicating that 13 percent of Korean assets should be held in cash. The index categorizes levels 0-10 as “reduce cash holdings,” 11-50 as “neutral,” and 51-100 as “increase cash holdings.” The U.S. version of the index also increased from 7 to 17.

Last week, both domestic and foreign asset markets recorded declines in both stocks and bonds. The VIX, a leading volatility indicator, reached 21.3 on October 20, exceeding the threshold of 20, which is commonly regarded as indicating a risky stock market. The MOVE index, which measures bond market volatility, rose from 97 on Sept. 14 to its current level of 137.

By Woo Soo-min and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]