[Good Morning Stock Market] US Nasdaq Strengthens... KOSPI Expected to Start Higher

On the 19th, the KOSPI is expected to start on an upward trend, supported by the previous day's rise in the U.S. stock market.

The Dow Jones Industrial Average closed at 34,951.93, up 366.58 points (1.06%) from the previous session. The Standard & Poor's (S&P) 500 index closed at 4,554.98, up 32.19 points (0.71%), and the tech-heavy Nasdaq index closed at 14,353.64, up 108.69 points (0.76%).

[Image source=Yonhap News]

Based on closing prices, the Dow, S&P 500, and Nasdaq indices are all at their highest levels since April of last year. Analysts suggest that the strong start to the Q2 earnings season has stimulated investors' buying sentiment. According to financial information firm FactSet, among the S&P 500 companies that have reported Q2 earnings so far, 84% have exceeded Wall Street analysts' net income forecasts.

By individual stocks, Morgan Stanley, BOA, and Bank of New York Mellon showed strength after reporting solid earnings. Microsoft also rose 3.98% after announcing a $30 monthly subscription service for Office 365 Copilot, and AI-related companies like Nvidia closed strong with a 2.22% increase.

On the previous day, the Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.3%, and the MSCI Emerging Markets ETF dropped 0.73%. In contrast, the Eurex KOSPI 200 futures rose 0.3%. Accordingly, the KOSPI is expected to start with an increase of around 0.3%.

Seosangyoung, a researcher at Mirae Asset Securities, analyzed, “The fact that major indices showed strength, including the New York stock market turning upward, will have a favorable impact on the domestic stock market. However, the strong desire for profit-taking remains a burden.”

He pointed out that although Nvidia and others showed strength amid rising expectations for the activation of the AI industry, most semiconductor stocks declined due to profit-taking, limiting the Philadelphia Semiconductor Index's rise to just 0.13%, which is a concern.

He added, “Weakness in U.S. retail sales and industrial production could increase the possibility of a slowdown in exports to the U.S., which is a burden. Considering this, the KOSPI is expected to start with an increase of around 0.3%, followed by a process of absorbing selling pressure.”

Han Jiyoung, a researcher at Kiwoom Securities, forecasted, “From an industry perspective, since AI-related stocks showed strength in the U.S. stock market the previous day, a positive environment will be created for AI-related stocks, including semiconductors, which have recently been consolidating, in the domestic stock market today.”

She also noted, “Whether the strong price trend of secondary battery stocks, which surged together the previous day, will continue is another point to watch. As the concentration on secondary battery stocks continues, market attention will focus on whether they will dominate as the leading stocks within KOSDAQ for the time being.”

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