Asian Financial Markets Jointly Welcome 'Biden Election Victory'

KOSPI Breaks Yearly High... Won-Dollar Exchange Rate Falls to 1,110 Level for First Time in 1 Year and 9 Months

On the 9th, dealers are working in the dealing room of Hana Bank in Euljiro, Seoul. On this day, the KOSPI index started at 2438.63, up 22.13 points (0.92%) from the previous trading day, and continued its strong performance. The won-dollar exchange rate opened at 1120.0 won, down 0.4 won. Photo by Moon Honam munonam@

[Asia Economy Reporters Eunbyul Kim, Boryeong Geum] With Joe Biden elected as the next U.S. president, Asian stock markets collectively rose. The domestic stock market surpassed its highest point of the year, and the won-dollar exchange rate fell to the 1110 won level for the first time in 1 year and 9 months.

As of 10:30 a.m. on the 9th, the KOSPI recorded 2458.52, up 1.74% (42.02 points) from the previous session, supported by net buying from foreigners and institutions. The KOSPI opened at 2438.63, up 0.92% (22.13 points) from the previous trading day, and gradually increased its gains. During the session, it surged to 2459.15, setting a 52-week high. In the KOSPI market, foreigners and institutions showed strong net buying. Foreigners net bought 211.4 billion won, institutions net bought 306.2 billion won, while individuals net sold 502.7 billion won.

The KOSDAQ index also rose 1.5% (12.54 points) to 849.32 at the same time. KOSDAQ opened at 845.81, up 1.08% (9.03 points), and maintained its strength. In the KOSDAQ market, foreigners and institutions net bought 65.1 billion won and 12.5 billion won respectively. Conversely, individuals sold 67.9 billion won.

Japan's Nikkei 225 index rose 1.98% to 24,807 at 10:50 a.m., and the Shanghai and Hong Kong stock markets also showed gains.

The won-dollar exchange rate in the Seoul foreign exchange market was 1,117.6 won per dollar as of 9:50 a.m., down 3.9 won from the previous trading day. The rate started at 1,120.0 won, down 0.4 won, then quickly dropped to the 1,110 won level and widened its decline. If the exchange rate closes below 1,120 won, it will mark the 1,110 won level for the first time in 1 year and 9 months since February last year.

The pace of yuan appreciation is also accelerating. On the same day, the People's Bank of China set the yuan-dollar reference rate at 6.6123 yuan per dollar, down 0.25% from the previous session. This is the lowest level since June 28, 2018 (6.5960 yuan).

The rise in stock prices and the fall in the exchange rate on this day are analyzed to be due to the resolution of uncertainty surrounding the U.S. presidential election with Biden's victory and expectations for large-scale stimulus measures from the Biden administration, which strengthen the outlook for a weaker dollar.

However, the resurgence of COVID-19 in major countries in the U.S. and Europe, increasing concerns about the global economy, is preventing further declines in the exchange rate. Seungji Jeon, a researcher at Samsung Futures, said, "Although the weak dollar pressure will continue reflecting Biden's election, the pace of decline will be moderated due to the resurgence of COVID-19 and re-lockdowns in the U.S. and Europe, as well as the slowdown in economic recovery."

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