Money Flow – Oct 16, 2026 KOSPI, KOSDAQ: Let’s stretch our legs today. Electronics: Will rebound to around the 2% level first. Printed Circuit Boards: Will surge in pre-market, then cool off sharply. Defense, Shipbuilding: Both Korea and Japan will see industrial goods cycling through rotation. Despite the Dow rising 1.1% and Nasdaq up 0.08%, SOX closed down 0.9%. Though SOX looked weak, it was actually stronger than it appeared. SOX plunged as much as -4.4% intraday before recovering to -0.9%. Nasdaq also recovered from -1.4%, indicating buying interest at lows. MU, which was hit hardest early, rebounded strongly from -6% to +1.9%. CoreWeave, which dropped over 15% yesterday, rebounded after Jensen Huang’s emergency reassurance. Thanks to Huang’s comment that no bailout is needed, it rose as much as 6%. But his words didn’t eliminate the company’s bond debt or interest burdens. PPI came in higher, yet the U.S. 10-year yield fell to 5.09%. WTI remains around $97, so the drop wasn’t due to oil prices. The decline in yields reflects a flight to safety—welcome, but not entirely reassuring. Fortunately, KOSPI and KOSDAQ are rebounding by approximately 3% and 4.3%, respectively. Of course, the rally isn’t a clean gap-up breakout, which is disappointing. Still, just halting further declines is something to be relieved about—though it’s a bit sad. Though some counter-trend selling emerged early, it was absorbed well. Compared to yesterday’s steep drop, today’s rebound is underwhelming—but at least the freefall has stopped. Given the circuit breaker triggered yesterday, even a modest upside bounce feels insufficient. Most stocks are rising together, offering little differentiation. However, PCBs that surged in pre-market have cooled off sharply. NVIDIA, which wasn’t hit as hard yesterday, rose 1.7%, joining Korea’s rebound. Japan’s tech stocks, which had fallen sharply, are also rallying in tandem. A common theme in both Korea and Japan: defense and shipbuilding. Mitsubishi Heavy Industries, Kawasaki Heavy Industries up 4–5%; IHI up around 4%. In Korea: Hanwha Systems and Hanwha Aerospace up in the 9% range; Hanwha Ocean up 6%. Money is rotating out of tech and into industrial goods. Foreign net selling, which exceeded KRW 30 billion yesterday, has now dropped to around KRW 20 billion. Still, given yesterday’s massive selloff, it remains disappointing. Today is Friday ahead of the weekend, so sustaining this rebound will be key. Tonight: iPhone Duo pre-orders and U.S. options expiration loom. iPhone Duo pre-order demand could also serve as a barometer for IT demand. Don’t assume a one- or two-day rebound reverses the trend—stay patient. It’s been a turbulent week, but after a bear market comes a bull market. Remember: you must survive to benefit from the next upswing—stay cautious.