[Good Morning Stock Market] US Stock Market Rally... Will Domestic Market Gain Momentum?

On the 12th, the KOSPI index and the won-dollar exchange rate were displayed on the electronic board in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI opened at 2,404.18, up 12.22 points (0.51%) from the previous trading day. The won-dollar exchange rate opened at 1,150.0 won, down 3.3 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Park Jihwan] Major U.S. indices showed a simultaneous strong upward trend as large tech stocks, including Apple, surged sharply.

On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,837.52, up 250.62 points (0.88%) from the previous day. The Standard & Poor's (S&P) 500 index also rose 57.09 points (1.64%) to 3,534.22, and the tech-heavy Nasdaq index surged 296.32 points (2.56%) to close at 11,876.26. Notably, the Nasdaq posted its largest gain since the 9th of last month.

Market experts expect a similar pattern in the domestic market, considering that in the U.S. stock market, only large tech stocks are rising, showing differentiation. It is forecasted that sectors and stock groups with upwardly revised earnings outlooks will show solid performance.

◆ Seo Sangyoung, Kiwoom Securities Researcher: It is necessary to focus on sectors with upwardly revised earnings forecasts. The Chinese stock market surged 2.6% the previous day, and the U.S. market also showed strength with the Nasdaq up 2.6%, indicating strong global peripheral markets. This is a factor that helps improve investment sentiment toward the Korean stock market.

However, looking closely, the Chinese market's rise was led by policy beneficiary stocks due to investment management policies from the State Council and the China Banking and Insurance Regulatory Commission. Considering that the U.S. market also showed extreme differentiation with only large tech stocks surging, the improvement effect on Korean market investment sentiment is expected to be limited. One notable characteristic of global markets is that stock groups with increased expectations for earnings improvement are leading the rise. Considering this, the Korean market is also expected to show solid performance in sectors and stock groups with upwardly revised earnings forecasts ahead of the full-scale earnings announcements. Additionally, attention should be paid to China's import and export trends.

◆ Kim Daejun, Korea Investment & Securities Researcher: The government plans to ease social distancing to level 1, normalizing economic activities. Expectations for economic recovery are rising, and interest in domestic demand is expected to increase more than exports. Domestic consumption is likely to strengthen compared to now. In particular, sales of consumer goods will increase regardless of durability, which will act as a favorable factor for economic recovery. Among items, consumption of durable goods such as automobiles, home appliances, and furniture, as well as semi-durable goods like clothing and shoes, is expected to increase. Especially for semi-durable goods, purchasing willingness had weakened due to the second wave of COVID-19, but with these concerns disappearing, a sharp increase is expected again.

This content was produced with the assistance of AI translation services.