KOSPI Shows Early Weakness Amid Overnight Decline in US Stock Market

[Asia Economy Reporter Park Ji-hwan] Following the overnight decline in the U.S. stock market due to inflation concerns, the domestic stock market is also showing a weak trend. However, the downward pressure has significantly eased compared to the early session, influenced by the strong domestic export performance announced at the start of trading.

As of 9:14 a.m. on the 1st, the KOSPI stood at 3062.00, down 6.82 points (-0.22%) from the previous trading day. The index opened at 3056.21, 12.61 points (0.41%) lower than the previous close, but the decline has been moderating. By investor type, individuals and foreigners were net buyers of 9.4 billion KRW and 48.4 billion KRW respectively, while institutions sold stocks worth 60.3 billion KRW.

The weakness in the domestic market is attributed to the sharp drop in the U.S. stock market overnight. On the 30th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average fell 546.80 points (1.59%) to 33,843.92. The S&P 500 index closed down 1.19% at 4,307.54, and the Nasdaq index dropped 0.4% to 14,448.58. Notably, the poor performance of retailers amid growing concerns over global supply chain disruptions stood out. The stock price of household goods retailer Bed Bath & Beyond plummeted 22.18% to close at $17.28.

However, the strong export figures for September, announced at the start of trading, appear to be supporting the index against further downward pressure. The Ministry of Trade, Industry and Energy announced that September exports increased 16.7% year-on-year to $55.83 billion, marking the 11th consecutive month of growth and the highest monthly export figure since records began. This is a new record high just two months after the previous record set in July.

Han Ji-young, a researcher at Kiwoom Securities, said, "The Korean stock market is expected to face renewed downward pressure due to the weak U.S. market caused by global supply chain issues, and macroeconomic headwinds are making investors' sentiment more vulnerable. However, if the September export results, announced at the start of trading, show strong performance, it could raise expectations for third-quarter earnings and support the market's downside."

Among the top 10 KOSPI stocks by market capitalization, performance was mixed. Samsung Electronics(-0.27%), SK Hynix(-0.97%), and Samsung SDI(-0.56%) were weak. In contrast, NAVER(0.26%), Samsung Biologics(0.80%), and Kakao(0.85%) rose.

At the same time, the KOSDAQ index was down 0.81 points (0.08%) from the previous day at 1002.46. By investor type, individuals were the sole net buyers with purchases worth 16.4 billion KRW, while foreigners and institutions were net sellers of 4.5 billion KRW and 9.7 billion KRW respectively.

Among the top 10 KOSDAQ stocks by market capitalization, Celltrion Healthcare (-1.55%), EcoPro BM (-1.69%), and Celltrion Pharm (-2.39%) were down. Kakao Games (0.46%), L&F (0.45%), HL Biopharma (0.71%), and Pearl Abyss (1.49%) rose.

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