KOSPI Rebounds on Foreign Net Buying... Surpasses 3170

KOSDAQ Also Rebounds to the 1030s

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[Asia Economy Reporter Minwoo Lee] The KOSPI, which had fallen to 3130 due to concerns over an economic slowdown as China's manufacturing Purchasing Managers' Index (PMI) fell short of expectations, has turned to an upward trend. Foreign investors switched from net selling to net buying, pushing the index past the 3170 level.

As of 1:49 PM on the 31st, the KOSPI recorded 3171.54, up 0.87% from the previous day. After a firm start in the 3140 range, the index turned downward following the release of China's manufacturing and non-manufacturing PMI figures below expectations at 10 AM, but it has been rebounding in the afternoon.

According to China's National Bureau of Statistics, the manufacturing PMI for August was 50.1, lower than July's 50.4. This is the lowest level in 18 months since February last year, when the economy was severely impacted by COVID-19. The manufacturing PMI, based on surveys of business executives, reflects trends in the related sector. A reading above 50 indicates expansion, while below 50 indicates contraction. The non-manufacturing PMI, which reflects service sector trends, plunged below the baseline to 47.5 from 53.3 in the previous month.

The index's rebound appears to be influenced by foreign investors switching to net buying. Foreign investors began shifting from net selling to net buying around noon. As of 1:51 PM, foreign investors had net purchased 310.4 billion KRW. In contrast, individual and institutional investors net sold 173.1 billion KRW and 151.2 billion KRW, respectively.

Most sectors turned to gains. The telecommunications sector saw the largest increase at 2.24%, followed by construction (1.58%), electrical and electronics (1.48%), steel and metals (1.37%), and pharmaceuticals (1.23%). Meanwhile, medical precision (-2.12%) and paper and wood (-1.03%) declined.

At the same time, the KOSDAQ rose 0.35% to 1035.40. After a firm start at 1032.77, it dropped to 1026.36 by 11:08 AM before rebounding.

In the KOSDAQ market, individuals continue to show strong net buying of 161.7 billion KRW alone. Foreign and institutional investors net sold 137.4 billion KRW and 13.3 billion KRW, respectively.

More sectors also rose here. IT components led with a 3.01% increase, followed by general electrical and electronics (1.46%), IT hardware (1.36%), and paper and wood (1.35%). However, transportation equipment and parts (-3.60%), digital content (-1.60%), and transportation (-1.18%) declined.

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