'Burdened by US Treasury Yields' KOSPI Drops Over 1%... Only Individual Investors Eyeing Bargain Buys Participate

[Asia Economy Reporter Lee Seon-ae] On the 4th, the domestic stock market started lower and the decline is widening. This is interpreted as an effect of the New York stock market falling due to the rise in U.S. Treasury yields.

On this day, the KOSPI index opened at 3,076.88, down 6.11 points (0.20%). The KOSDAQ index started the session at 929.09, down 1.71 points (0.18%). This was influenced by the decline in the New York stock market due to concerns over rising U.S. Treasury yields. On the 3rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,270.09, down 121.43 points (0.39%) from the previous session. The Standard & Poor's (S&P) 500 index recorded 3,819.72, down 50.57 points (1.31%). The tech-heavy Nasdaq index closed at 12,997.75, plunging 361.04 points (2.7%). The decline in the New York stock market was driven by U.S. Treasury yields. As U.S. Treasury yields rose again, investor anxiety was triggered. The 10-year U.S. Treasury yield approached 1.5% at one point during the session. As the market closed, it traded around 1.47%. This is a significant increase compared to the early 1.4% level the previous day.

As of 9:16 a.m., the KOSPI is down 1.18%, standing at 3,046.82. The KOSDAQ is down 1.11%, at 920.47. Only individual investors are net buyers, taking advantage of low prices. Individuals are net buying 618.4 billion KRW in the securities market and 62.8 billion KRW in the KOSDAQ market. On the other hand, foreigners and institutions are net sellers. Foreigners are net selling 41.1 billion KRW in the securities market and 30 billion KRW in the KOSDAQ market. Institutions are also net selling 594.4 billion KRW and 32.7 billion KRW in the two markets, respectively.

Most sectors are showing a downward trend. In the securities market, except for non-metallic minerals (2.52%), steel and metals (1.53%), and machinery (3.10%), all sectors are declining. In the KOSDAQ market, except for textiles and apparel (0.27%), metals (0.92%), communication services (0.23%), and information devices (0.39%), all sectors are falling.

Most of the top market capitalization stocks are also in the red. In the securities market, only POSCO (3.18%) is showing an upward trend. In the KOSDAQ market, Celltrion Healthcare (0.54%), Celltrion Pharm (0.51%), and HL Biopharma (0.28%) are rising, but most others are declining.

Seo Sang-young, a researcher at Kiwoom Securities, said, "The U.S. stock market fell again, mainly due to selling pressure on tech stocks and some theme stocks with high value burdens, triggered by rising interest rates, which is a burden." He pointed out, "The rise in U.S. Treasury yields could ultimately burden foreign investors' supply and demand in emerging market stocks." He added, "Considering this, the Korean stock market is expected to start lower and continue a sector-differentiated market trend, similar to the characteristics of the U.S. stock market."

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