KOSPI and KOSDAQ Fall by Over 1%... "Impact of US-Originated Sharp Interest Rate Hike"

[Asia Economy Reporter Ji-hwan Park] On the 19th, the domestic stock market is showing a decline of more than 1% in the early trading session. Analysts suggest that the drop in the U.S. New York stock market overnight, triggered by a sharp rise in the 10-year Treasury bond yield, negatively affected investor sentiment in the domestic market.

As of 9:15 a.m., the KOSPI is at 3,025.07, down 40.94 points (1.34%) from the previous trading day. The index opened at 3,063.01, down 3.00 points (0.10%) from the previous close, and the decline is widening.

By investor type, individual investors are net buyers with purchases worth 393.9 billion KRW in the early session. In contrast, foreigners and institutions are net sellers, offloading 122.2 billion KRW and 258.9 billion KRW, respectively.

Most sectors are declining, with chemicals, medical precision instruments, textiles and apparel, electrical and electronics, manufacturing, services, and distribution all falling more than 1%.

Among the top 10 market capitalization stocks, all are in decline. LG Chem recorded the largest drop, falling 2.90% to 836,000 KRW compared to the previous day. SK Hynix (-2.82%), Samsung SDI (-2.42%), Kakao (-2.41%), and Celltrion (-2.05%) also fell by around 2%. SK Bioscience, which had a 'double opening' success the previous day, rose 6.51% to 180,000 KRW.

At the same time, the KOSDAQ is also down. The KOSDAQ index fell 1.20% (11.41 points) to 938.42 compared to the previous day.

Individuals are net buyers with 17.7 billion KRW, foreigners net buyers with 200 million KRW, and institutions net sellers with 15.5 billion KRW.

The top 10 market cap stocks on KOSDAQ are also uniformly declining. Celltrion Healthcare (-2.23%), Celltrion Pharm (-2.32%), Alteogen (-1.23%), Kakao Games (-1.15%), Pearl Abyss (-2.03%), and Seegene (-3.49%) are all falling.

The decline in the domestic stock market today is attributed to the overnight drop in major U.S. indices due to the sharp rise in the 10-year Treasury bond yield. On the 18th (local time), the 10-year Treasury bond yield surged by 11 basis points (1 bp = 0.01%p) to 1.754% in the New York bond market, marking the highest level since January last year.

Sang-young Seo, a researcher at Kiwoom Securities, explained, "As countries around the world announced either raising policy interest rates or advancing the timing of hikes due to inflation concerns, the U.S. 10-year Treasury bond yield reached 1.75%. The sharp rise in yields and the steep drop in international oil prices appear to be negatively impacting foreign investor demand."

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