KOSPI Fluctuates According to US Vote Counting Situation

Strong Opening Following Overnight Gains in New York Stock Market
Florida, the Key Battleground State, Sees a Nail-Biting Close

On the 4th, news related to the U.S. presidential election is displayed on the computer monitor of an employee working in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kum Boryeong] Domestic and international financial markets fluctuated repeatedly depending on the vote counting situation of the U.S. presidential election. Thanks to the sharp rise in the New York Stock Exchange overnight, the market started on an upward trend, but as Democratic presidential candidate Joe Biden and U.S. President Donald Trump engaged in a neck-and-neck battle in battleground states, major indices showed volatility.

On the 4th, the KOSPI opened at 2361.32, up 0.77% (18.01 points) from the previous session. This was influenced by the sharp rise in the New York Stock Exchange on the 3rd (local time) due to expectations regarding the U.S. presidential election results. The Dow Jones Industrial Average closed at 27,480.03, up 2.06% (554.98 points), the S&P 500 index closed at 3,369.16, up 1.78% (58.92 points), and the Nasdaq index closed at 11,160.57, up 1.85% (202.96 points).

The New York Stock Exchange showed strength from the opening and maintained the trend until just before closing. CNBC reported that "investors bet on the 'Blue Wave'." This was driven by expectations that the Democratic Party would sweep both the House and Senate along with Biden's victory. The KOSPI also showed a rise of over 1.1% at 9:20 a.m. thanks to these expectations.

However, as vote counting began in some states and the two candidates exchanged leads in Florida, considered the largest battleground state, the KOSPI lost momentum and could not maintain its strength. According to The New York Times (NYT), at a 36% vote count in Florida, Biden led with 50.3%, but at a 51% count, President Trump recorded 50.3%. Eventually, the KOSPI turned to a downward trend around 10:06 a.m. and dropped to 2399.95, down 0.14% (3.36 points) from the previous session at 10:09 a.m. Florida holds the largest number of 29 electoral votes among battleground states.

As news came that Biden was significantly ahead of President Trump in another major battleground state, Pennsylvania, the KOSPI gradually stabilized. As of 10:45 a.m., the KOSPI recorded a 0.4% (9.41 points) rise at 2352.72. At a 9% vote count in Pennsylvania, Biden led with 65.6%. Pennsylvania has 20 electoral votes. However, since mail-in ballot openings in Pennsylvania began on this day, delays in vote counting are inevitable. President Trump is preparing a lawsuit against Pennsylvania, which accepts mail-in ballots arriving after Election Day.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The Senate election held alongside the presidential election is also important, and if the Democrats do not take control of the Senate, frictions related to the large-scale stimulus package, which the market has taken for granted, are inevitable," adding, "The Korean stock market will experience a highly volatile day depending on the vote counting trends in Florida and Pennsylvania and the Senate election results."

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