Impact of US Stock Market Plunge... KOSPI Drops Over 1% in Early Trading

Reflecting US Inflation and Early Tightening Concerns
KOSPI and KOSDAQ Indices Both Fall After Market Open
KOSDAQ Index Drops Below 1000 for the First Time in Over a Month

[Asia Economy Reporter Minji Lee] As the U.S. stock market sharply declined due to a surge in Treasury yields, the domestic stock market also appears to be significantly shaken.

At 9:12 a.m. on the 29th, the KOSPI was at 3,056.04, down 1.35% (41.88 points) from the previous trading day. The KOSPI opened at 3,055.50, down 1.37% (42.42 points) from the previous day, and continued its downward trend. Looking at investor trends, foreigners and individuals sold stocks worth 900 million KRW and 144 billion KRW respectively, while institutions alone purchased stocks worth 149.7 billion KRW.

The domestic stock market is interpreted to be continuing its decline due to the sharp drop in the U.S. stock market. The three major U.S. indices plunged significantly the previous day, reflecting concerns over expanding inflation and the Federal Reserve’s early tightening. In particular, the tech-heavy Nasdaq index fell more than 2%. The U.S. 10-year Treasury yield surged to 1.57%. Furthermore, concerns over delays in the U.S. Congress debt ceiling negotiations and China’s economic slowdown outlook also exerted downward pressure on the indices.

Kim Hwan, a researcher at NH Investment & Securities, analyzed, “Treasury Secretary Janet Yellen testified to Congress that if the debt ceiling is not raised by the 18th of next month, a default will occur, but the Republicans oppose this agenda, making negotiations difficult.” He added, “In China’s case, major investment banks have downgraded growth forecasts based on ongoing factory operations amid power shortages, which has acted as a burden.”

He continued, “Although earnings forecasts are being revised upward, so the sharp decline will not continue, short-term downward pressure on the U.S. stock market may increase. Due to rising interest rates, value stocks sensitive to the economy will be relatively more stable than growth stocks.”

Looking at the top market capitalization stocks, most showed sharp declines: Samsung Electronics (-1.57%), SK Hynix (-1.91%), NAVER (-1.53%), LG Chem (-1.68%), Kakao (-1.28%), Samsung SDI (-1.96%), Hyundai Motor (-0.99%).

At the same time, the KOSDAQ index was at 995.47, down 1.66% (16.79 points) from the previous trading day. The index opened at 994.61, down 1.77% (17.90 points), and even showed a sharp decline of over 2%. The KOSDAQ index fell below the 1,000 mark again for the first time in about a month since August 23. Looking at investor trends, selling by individuals and institutions was prominent. Individuals and foreigners sold stocks worth 26.4 billion KRW and 18.6 billion KRW respectively, while foreigners alone purchased stocks worth 57.4 billion KRW.

Looking at the price trends of the current top market capitalization stocks, most stocks declined: Celltrion Healthcare (-0.72%), EcoPro BM (-3.27%), L&F (-3.89%), Pearl Abyss (-2.02%), Celltrion Pharm (-1.48%), Kakao Games (-1.62%), while HL Biopharma (3.58%) continued its upward trend.

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