'Peak Inflation Theory' Impact on US Stock Market... KOSPI Starts Higher

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market started higher on the 30th, influenced by expectations of the U.S. 'inflation peak theory.'

The KOSPI index was trading at 2,664.29 at 9:05 a.m., up 0.99% (26.24 points) from the previous day. The index opened 0.88% higher and is slightly expanding its gains in the early session.

Institutions are leading the rise with net purchases worth 45.8 billion KRW. Meanwhile, individuals and foreigners are net sellers of 24.5 billion KRW and 23.6 billion KRW, respectively.

At the same time, the KOSDAQ index also rose 1.04% (9.12 points) to 883.09. Individuals and institutions are net buyers of 25.1 billion KRW and 7.4 billion KRW, respectively, while foreigners are net sellers of about 31 billion KRW.

Earlier last weekend, the U.S. stock market closed higher across the board on relief that inflation had peaked after the Personal Consumption Expenditures (PCE) price index for April fell compared to the previous month. The rebound was strong, especially in technology stocks, which had sharply declined amid concerns over stagflation (a phenomenon where inflation and economic stagnation occur simultaneously).

The PCE price index released by the U.S. Department of Commerce rose 6.3% year-on-year and 0.2% month-on-month. This figure is lower than the 6.6% year-on-year increase in March, which was the largest rise in 40 years. The inflation indicator referenced by the U.S. central bank, the Federal Reserve (Fed), showed a slowdown in its rate of increase for the first time in a year and a half since November 2020.

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