After Chuseok Holiday, KOSPI Surpasses 2440 on Foreign and Institutional Dual Buying Spree

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[Asia Economy Reporter Lee Seon-ae] The KOSPI index is showing strength with its first 2% range increase since June 24. It surged rapidly to 2420 and 2430 shortly after the market opened, then surpassed 2440. The rally in the U.S. New York stock market as well as global markets, combined with strong buying from foreigners and institutions, is supporting the index's rise.

As of 11:53 a.m. on the 13th, the KOSPI index was at 2443.89, up 2.50% from the previous trading day. The KOSPI opened at 2418.59, up 34.31 points (1.44%). Foreigners and institutions bought 211.5 billion KRW and 486 billion KRW respectively, contributing to the index's increase. Only individual investors sold 685.4 billion KRW.

Seo Sang-young, a researcher at Mirae Asset Securities, said, "Despite hawkish remarks from Federal Reserve (Fed) officials during the Chuseok holiday period, the U.S. stock market continued its upward trend as the dollar weakened, which positively influenced the Korean stock market." He added, "Furthermore, ahead of the U.S. Consumer Price Index (CPI) announcement scheduled for this evening Korean time, expectations for inflation have been significantly revised downward. This, along with the stabilization of global commodity prices and easing supply chain concerns, has expanded expectations for inflation stability, which is also favorable."

Han Ji-young, a researcher at Kiwoom Securities, commented, "Since the CPI consensus is formed at 8.1% (YoY), it is reasonable to view that U.S. inflation has shifted to a downward trend." She continued, "The Fed has also declared that it will make rate decisions based on data prior to each Federal Open Market Committee (FOMC) meeting. Therefore, if the actual figures confirm a slowdown in inflation, there is an expectation that after the 75 basis point hike at the September FOMC, the pace of tightening will be adjusted in subsequent meetings, allowing the stock market to potentially experience an additional relief rally."

Overnight, all three major New York stock indices rose. The Dow Jones Industrial Average closed at 32,381.34, up 229.63 points (0.71%) from the previous session. The Standard & Poor's (S&P) 500 index ended at 4,110.41, up 43.05 points (1.06%). The tech-heavy Nasdaq index closed at 12,266.41, up 154.10 points (1.27%). The market was influenced by opinions that inflation had peaked ahead of the CPI announcement. This expectation that inflation will slow down going forward led to the rise in stock prices.

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