[Good Morning Stock Market] US Dow Surpasses 34000.. Will KOSPI Break 3200?

[Asia Economy Reporter Junho Hwang] The KOSPI closed higher the previous day, supported by net buying from individuals and foreigners. Following this, the U.S. stock market also showed an upward trend amid growing expectations ahead of the first-quarter earnings announcements. Market interest rates, represented by the U.S. 10-year Treasury yield, also stabilized. As a result, attention is focused on whether the KOSPI will reach a new high on the 16th. The KOSPI recorded 3204 during intraday trading the previous day, surpassing the 3200 mark again for the first time in 55 trading days since January 25.

The previous day, the KOSPI closed higher with net purchases of 421.9 billion KRW and 203.7 billion KRW by individuals and foreigners, respectively. While foreigners engaged in net buying for the ninth consecutive trading day, individuals who had been realizing profits also turned to net buying, leading the market to an upward trajectory. During the session, the index even surpassed the 3200 level.

Foreigners focused their net buying on Samsung Electronics, LG Electronics, Industrial Bank of Korea, Shinhan Financial Group, KB Financial Group, Dongkuk Steel, Poongsan, and POSCO. Kakao's stock price surged after completing a 5-for-1 stock split and resuming trading. LG Electronics received positive attention due to rumors of collaboration on the Apple Car and news of expanding its local washing machine factory amid a significant increase in U.S. washing machine demand.

On the 6th, dealers are working in the Hana Bank dealing room in Euljiro, Seoul. On this day, the KOSPI index started at 3,123.80, up 2.97 points (0.10%) from the previous trading day, showing an upward trend. Photo by Moon Honam munonam@

After the KOSPI closed, the U.S. market also showed strong performance the previous day. With growing expectations for corporate earnings announcements and improvements in key economic indicators, the stock market rose. The downward stabilization of Treasury yields also had an impact.

Accordingly, the Dow Jones Industrial Average surpassed the 34,000 mark for the first time ever. The Dow closed at 34,035.99, up 305.10 points (0.90%). The S&P 500 index rose 45.76 points (1.11%) to 4,170.42, and the Nasdaq index closed at 14,038.76, up 180.92 points (1.31%). The Russell 2000 ended the day up 0.42%.

The employment and retail data released that day dramatically reversed market sentiment. Retail sales for March, announced before the market opened, surged 9.8% compared to the previous month. Initial jobless claims dropped sharply by 193,000 to 576,000 in one week. Both indicators exceeded market expectations, delivering surprising results. This was the exact opposite of last month's situation, when initial jobless claims increased and retail sales declined. The market interpreted this as a rapid economic recovery, supported by the U.S. government's $1,400 cash payment policy.

The U.S. 10-year Treasury yield also fell to the 1.5% range for the first time in a month. The 10-year yield recorded 1.5769% the previous day, while the 30-year yield reached 2.2768%.

Yujun Choi, a researcher at Shinhan Financial Investment, stated, "Samsung Electronics is scheduled to pay dividends today, with foreign investors expected to receive about 7.7 trillion KRW." He added, "We believe exchange rate volatility may increase due to repatriation demand." He further noted, "There is also a possibility that some of the dividends will be reinvested in the domestic stock market. Whether the KOSPI breaks its previous high depends on the semiconductor and automobile sectors, which had a slower rebound."

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