KOSPI Recovers Above 3000 During Session... "Impact of US-China Summit Expectations"

On the 16th, when the KOSPI index started lower due to selling by individuals and foreigners, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. The KOSPI opened at 2,995.68, down 3.84 points (0.13%) from the previous trading day. Photo by Moon Honam munonam@

[Asia Economy Reporter Park Jihwan] On the 16th, the KOSPI recovered the '3000 level' intraday in just one day, driven by buying from individuals and foreigners. It is interpreted that the expectation that the existing confrontation between the United States and China could ease during the summit between the two countries that morning influenced investor sentiment.

As of 10:33 a.m., the KOSPI stood at 3004.49, up 0.17% (4.97 points) from the previous trading day. The index started with a slight decline early in the session but successfully turned upward as individuals expanded their buying and foreigners switched to buying.

By investor type, individuals net bought 36.3 billion KRW. Notably, foreigners, who were net sellers early in the session, turned to net buyers, purchasing 41.1 billion KRW. Institutions were the only sellers, offloading stocks worth 77.6 billion KRW.

Among the top market capitalization stocks, performance was mixed. Samsung Electronics rose 0.70%, and SK Hynix increased by 0.90%. Samsung Biologics (0.46%), LG Chem (2.09%), and Samsung SDI (1.46%) also gained. Conversely, NAVER and Kakao declined by -0.36% and -1.16%, respectively.

At the same time, the KOSDAQ was trading at 1032.13, up 3.10 points (0.30%) from the previous day.

By investor type, individuals led the index rise with net purchases of 100.3 billion KRW. Foreigners and institutions were net sellers, offloading 66.6 billion KRW and 23.8 billion KRW, respectively.

Among the top market capitalization stocks, most showed gains. Only Celltrion Healthcare and Celltrion Pharm fell by -1.73% and -0.95%, respectively. EcoPro BM (0.32%), Pearl Abyss (7.21%), L&F (1.81%), Kakao Games (2.37%), and Wemade (7.56%) rose.

The domestic index's rise appears to be positively influenced by expectations that the summit between U.S. President Joe Biden and Chinese President Xi Jinping could find ways to ease the existing U.S.-China conflict.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The expectation that U.S.-China relations will not escalate into conflict as in the past seems to have positively affected foreign investor flows."

Lee Woong-chan, a researcher at Hi Investment & Securities, said, "Among the goods exported from China to the U.S., IT products account for the largest share. Since Korean parts are used in assembling finished products, easing tensions between the two countries is expected to have the most positive impact on the IT sector."

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