KOSPI and KOSDAQ Narrow Losses... Now Market Eyes China's Economic Data Release

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 15th, the KOSPI index, which started lower due to inflation concerns, is reducing its losses thanks to net buying by individuals. The KOSDAQ successfully turned to an upward trend. Ahead of the announcement of the U.S. Federal Reserve's (Fed) Federal Open Market Committee (FOMC) results, November's U.S. producer prices hit an all-time high, fueling inflation fears and dampening investor sentiment, but the market seems to have moved beyond excessive anxiety. Now, the market's attention is shifting to the release of China's real economy indicators.

According to the Korea Exchange, as of 10:53 a.m. that day, the KOSPI index was trading at 2,982.98, down 0.17% from the previous trading day.

Individuals are buying stocks worth 167.8 billion KRW. This marks the first time in three trading days that individuals have turned to net buying. However, foreigners and institutions are selling stocks worth 102.3 billion KRW and 72.7 billion KRW, respectively.

Han Ji-young, a researcher at Kiwoom Securities, explained, "The acceleration of tapering (asset purchase reduction) has been largely priced in by the market after the November FOMC, but concerns about the acceleration of interest rate hikes are ongoing. As the FOMC results approach, caution is increasing, and the domestic stock market is expected to enter a phase of increased volatility." She added, "However, it is also possible that the actual pace of the Fed's rate hikes will not proceed as quickly as currently expected (3 to 4 times a year) at this point."

The domestic stock market is expected to see a rebound buying influx depending on the release of China's real economy indicators. Seo Sang-young, a researcher at Mirae Asset Securities, said, "It is necessary to pay attention to China's real economy indicators, including retail sales, which are expected to slightly slow compared to the previous month, and industrial production, which is expected to show slight improvement. If the results are better than expected, a rebound buying trend is anticipated."

Meanwhile, at the same time, the KOSDAQ index was trading at 1,004.73, up 0.19% from the previous trading day. Individuals and institutions are showing net buying of about 34.2 billion KRW and 17.4 billion KRW, respectively, while foreigners are showing net selling of about 39.9 billion KRW.

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