With US and China Stock Markets Rebounding... KOSPI Closes Higher After 4 Trading Days

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] On the 16th, the domestic stock market closed higher, buoyed by the simultaneous rise in the US and Chinese stock markets.

On that day, the KOSPI closed at 2,621.53, up 0.91% (24.12 points) from the previous trading day. Foreigners and individuals net bought 133.1 billion KRW and 236.3 billion KRW respectively, while institutions net bought 364.6 billion KRW, driving the index upward.

The KOSPI recorded an upward trend for the first time in four trading days, supported by the rise in the US and Chinese stock markets. On the 15th (local time), the Dow Jones Industrial Average and the Standard & Poor's (S&P) 500 index rose 1.82% and 2.14%, respectively. Additionally, the tech-heavy Nasdaq closed up 2.92%. The US stock market was influenced by a sharp decline in international oil prices, dispelling stagflation concerns that arose after Russia's invasion of Ukraine.

The rebound of the Chinese stock market, which had been falling due to city lockdowns caused by the spread of COVID-19, is also considered to have had an impact. Seo Sang-young, a researcher at Mirae Asset Securities, said, "The Chinese stock market, which had been sluggish, is surging," adding, "This is the result of a speech by Liu He, Vice Premier of the State Council of China, who advocated that monetary policy should actively support the economy." He continued, "Such remarks especially caused a surge in Chinese platform companies and alleviated concerns about China's economic slowdown," adding, "This led to rises in domestic and other Asian markets." The Shanghai Composite Index, which closed down 4.95% the previous day, was up 3.34% as of 2:33 PM that day. The Hong Kong Hang Seng Index surged 8.5%.

Among the top market capitalization stocks, Kia showed the largest gain, rising more than 4%. This was followed by SK Hynix (3.56%), Hyundai Motor (3.07%), Samsung SDI (2.26%), Samsung Biologics (1.85%), Samsung Electronics (1.29%), LG Energy Solution (1.11%), Kakao (0.97%), NAVER (0.92%), and LG Chem (0.68%).

By sector, construction (2.57%), transportation and warehousing (2.31%), transportation equipment (2.28%), medical precision instruments (1.97%), chemicals (1.87%), and electrical and electronics (1.71%) rose. In contrast, telecommunications (-0.26%) declined.

The KOSDAQ index rose sharply by 2.36% (20.58 points) to 891.80. Although individuals net sold 264.7 billion KRW, foreigners and institutions net bought 149.5 billion KRW and 146.7 billion KRW respectively, pushing the index higher.

Among the top market capitalization stocks, Rino Industrial showed strong performance, rising 7.30%. This was followed by CJ ENM (6.83%), Pearl Abyss (4.02%), EcoPro BM (3.95%), HLB (3.52%), Kakao Games (2.87%), L&F (1.96%), Celltrion Healthcare (1.32%), Wemade (0.74%), and Celltrion Pharm (0.52%).

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