[Good Morning Stock Market] Partial Russian Troop Withdrawal... US Stock Market Rebounds

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] On the 15th (local time), the U.S. stock market rebounded due to easing economic indicators and a reduction in tensions between Russia and Ukraine. This positive sentiment is expected to have a favorable impact on the domestic stock market as well.

On the 15th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average closed up 1.22%, the S&P 500 rose 1.58%, and the Nasdaq increased by 2.53%.

With the 16th, known as the date of Russia's invasion, approaching, the Russian Ministry of Defense announced a partial withdrawal of troops from the border area with Ukraine, and President Putin stated that "he does not want war," which helped ease war risks and was reflected in the stock market.

The U.S. January Producer Price Index (9.7% YoY, forecast 9.1%) released that day showed a sharp increase, raising concerns about entrenched and prolonged inflation. However, as worries over the Ukraine situation eased, the market started on a positive note. Following this, the semiconductor sector surged sharply with Intel's M&A activity, and Marriott's strong earnings report led reopening-related stocks to show strength, demonstrating a sensitive reaction to positive news.

This sentiment is also expected to influence the domestic stock market. Ji-young Han, a researcher at Kiwoom Securities, predicted, "Despite lingering caution over the January FOMC minutes, the domestic stock market is expected to show an upward trend, supported by the sharp rise in advanced countries' stock prices due to the easing of Ukraine war risks." However, she added, "As major gaming stocks such as NCSoft and Roblox (which reported earnings after market close and saw a post-market price drop of around 13%) recorded earnings shocks, the rebound momentum is expected to vary depending on individual sector issues."

Sang-young Seo, a researcher at Mirae Asset Securities, said, "Geopolitical risks need to be monitored further, and attention should be paid to the pace of U.S. interest rate hikes. Although the rise in the Producer Price Index is a burden, it is important to note that expectations for a peak-out remain as the 12-month expected inflation rate has begun to slow."

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