[Good Morning Stock Market] Kospi Expected to Show Limited Fluctuations After Starting Up 0.5%

[Asia Economy Reporter Jang Hyowon] On the 27th, the KOSPI is expected to start with a 0.5% rise and then show limited fluctuations. While profit-taking from recent gains is being absorbed, differentiation among individual stocks is anticipated.

On the 26th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 33,949.41, up 205.57 points (0.61%) from the previous session. The Standard & Poor's (S&P) 500 index rose 44.21 points (1.10%) to 4,060.43, and the Nasdaq index closed at 11,512.41, up 199.06 points (1.76%).

Investors in the New York stock market focused on U.S. economic indicators such as Gross Domestic Product (GDP) and corporate earnings. The generally solid U.S. economic data increased expectations for a soft landing of the economy.

[Image source=Yonhap News]

The seasonally adjusted U.S. GDP for the fourth quarter of last year increased at an annualized rate of 2.9% compared to the previous quarter. This slightly exceeded the 2.8% growth forecast by experts surveyed by The Wall Street Journal (WSJ), but fell short of the 3.2% growth in the third quarter.

By stock, Tesla surged 11% after reporting earnings that exceeded market expectations. Tesla's quarterly net income surpassed market estimates, and its revenue was roughly in line with expectations. Elon Musk, Tesla CEO, mentioned that if there are no supply chain disruptions, the company could produce about 2 million vehicles this year.

Seo Sangyoung, a researcher at Mirae Asset Securities, analyzed, "The U.S. stock market rose on the back of highlighted possibilities of a soft landing despite ongoing concerns about economic slowdown, which is positive for the domestic stock market. In particular, Tesla's sharp rise amid expectations of increased demand led the strength of other large tech stocks, which is favorable for investor sentiment."

However, he added, "Since these positive factors were already reflected in the domestic market the previous day, their impact will be limited. Additionally, the poor earnings reports from Intel and Hasbro, which are falling in after-hours trading, are also a burden."

Han Jiyoung, a researcher at Kiwoom Securities, forecasted, "The KOSPI will show a positive trend supported by foreign capital inflows, which have been net buying for 10 consecutive trading days. In terms of sectors, following Hyundai Motor's operating profit surprise the previous day, the earnings results of Kia and Hyundai Mobis scheduled for today are expected to further improve investment sentiment in the automobile sector."

Meanwhile, the one-month Non-Deliverable Forward (NDF) USD/KRW exchange rate in New York was 1,231.31 won. Reflecting this, the USD/KRW exchange rate is expected to start the day around a stable range.

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