KOSPI Starts Higher on Easing Tightening Pressure... Steady at 2430 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] On the 24th, the domestic stock market started on an upward trend. The KOSPI index remains around the 2430 level as concerns over the U.S. Federal Reserve's (Fed) tightening have somewhat eased.

As of 9:19 a.m., the KOSPI is trading at 2435.39, up 0.72% from the previous day. Institutions alone are net buyers with 29.9 billion KRW, supporting the index's rise. Meanwhile, individuals and foreigners are net sellers by approximately 11.6 billion KRW and 16.2 billion KRW, respectively.

By sector on the KOSPI, non-metallic minerals (1.75%) and paper & wood (1.90%) are rising. Conversely, steel & metals (0.79%) and textiles & apparel (0.48%) are declining. All of the top 10 market capitalization stocks are on the rise. SK Hynix, LG Chem, and Samsung SDI are recording gains in the 1% range.

The KOSDAQ is trading at 731.67, up 0.84% from the previous day. Individuals and institutions are net buyers of about 17.9 billion KRW and 3.4 billion KRW, respectively, while foreigners are net sellers of 19.7 billion KRW. Most sectors are on the rise, including paper & wood (2.74%) and IT components (1.74%).

Among the top market capitalization stocks on the KOSDAQ, secondary battery-related stocks such as L&F, EcoPro BM, EcoPro, and Cheonbo are rising. Meanwhile, HLB and Rino Industrial are slightly down.

Seosangyoung, a researcher at Mirae Asset Securities, forecasted, "The rise in the U.S. stock market, supported by a weaker dollar and falling government bond yields, along with the Fed's terminal rate projected at 5%, will have a positive impact on the Korean stock market."

He also noted that although the Bank of Korea's Monetary Policy Committee, scheduled for 9 a.m. today, is likely to raise rates by 25 basis points (1bp = 0.01 percentage point), which could reduce the won's appreciation, the impact is expected to be limited.

Meanwhile, on the 23rd (local time), major U.S. stock indices closed higher as the Fed hinted at slowing the pace of rate hikes. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,194.06, up 95.96 points (0.28%) from the previous session. The Standard & Poor's (S&P) 500 index closed at 4,027.26, up 23.68 points (0.59%). The tech-heavy Nasdaq index ended at 11,285.32, up 110.91 points (0.99%).

The market focused on the minutes of the Federal Open Market Committee (FOMC) meeting held on the 1st and 2nd, released that day. Some members stated, "If the Fed continues to raise rates aggressively at the current pace, there could be risks to the financial system, and slowing the pace of hikes could reduce the risk of financial instability." The minutes indicated that a significant number of participants judged that slowing the pace of rate hikes would soon be appropriate. According to the minutes, most attendees believed that monetary policy was approaching a sufficiently restrictive level to achieve the Fed's inflation target of around 2%, making a pace adjustment appropriate in the near future. This suggested the possibility of slowing rate hikes from the end of this year through next year. As expectations grew that the magnitude of rate hikes would decrease within the next few months, investment activity continued.

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