US Stock Market Breathes Easy with Positive Momentum and Rebound Buying... Closes Higher

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[Asia Economy Reporter Lee Seon-ae] On the 12th, the KOSPI, which started higher, maintained its gains with the inflow of rebound buying, successfully closing slightly higher compared to the previous trading day. Analysts say that risk asset preference improved as the U.S. Federal Reserve (Fed) expressed confidence in the economy through its monetary policy report and other statements.

The KOSPI index closed at 3,246.47, up 0.89% from the previous trading day. The index opened at 3,227.51, up 9.56 points (0.30%) from the previous day, showed a steady upward trend, and even surpassed the 3,250 level during the session.

Foreigners and institutions supported the KOSPI's rise with net purchases of 34.1 billion KRW and 219.3 billion KRW, respectively.

By sector, all rose, including Construction (2.04%), Banking (2.01%), Steel & Metals (1.88%), Textile & Apparel (1.75%), Finance (1.75%), Insurance (1.71%), Securities (1.61%), Transportation Equipment (1.58%), Non-metallic Minerals (1.57%), Distribution (1.46%), and Electric & Gas (1.34%).

The KOSDAQ index closed at 1,034.64, up 0.55% from the previous trading day. It opened at 1,030.36, up 1.43 points (0.14%) on the day.

In the KOSDAQ market, individuals alone bought stocks worth 143.2 billion KRW, while foreigners and institutions sold 85.5 billion KRW and 43.5 billion KRW, respectively.

By sector, Paper & Wood, Construction, Metals, Finance, and Transportation rose by around 1%, and Entertainment & Culture showed strong gains with a 2% increase. Conversely, Digital Content fell by about 1%, and Pharmaceuticals and Information Devices declined by less than 1%.

Seosangyoung, a researcher at Mirae Asset Securities, analyzed, "The domestic stock market was positively influenced by the Fed's monetary policy report expressing confidence in the economy." He added, "Additionally, the strong rebound buying in Asian stock markets was also favorable." However, Seosangyoung noted, "With the earnings season approaching and ongoing peak-out debates, the market is expected to digest selling pressure rather than expand gains."

Seojunghoon, a researcher at Samsung Securities, assessed, "Due to the concurrent stock price adjustment and depreciation of the Korean won, the KOSPI on a dollar-converted basis shows oversold signals in technical indicators, suggesting that rebound buying can sufficiently flow in."

Kim Daejun, a researcher at Korea Investment & Securities, stated, "Although concerns about further declines remain as risk factors have not been completely resolved, excessive worries should be avoided." He evaluated, "China's monetary easing and the rebound in the U.S. stock market are factors that revive the shrinking risk asset preference." He emphasized, "Attention should be paid to sectors with increased valuation attractiveness due to lower stock price levels."

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