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

[Image source=Yonhap News]

On the 25th, the KOSPI index is expected to start slightly higher, benefiting from the rise in the U.S. stock market despite concerns about an economic slowdown.

On the previous day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,411.24, up 183.55 points (0.52%) from the previous session. The Standard & Poor's (S&P) 500 index rose 18.30 points (0.40%) to 4,554.64, and the Nasdaq index ended the day at 14,058.87, up 26.06 points (0.19%) from the previous close.

The New York stock market started higher as some large tech stocks that had been weak due to the Nasdaq 100 rebalancing saw a rebound. Additionally, financial stocks showed strength ahead of the Federal Open Market Committee (FOMC) meeting, and the energy sector index rose as China demonstrated its willingness to stimulate the economy.

By individual stocks, Tesla fell after UBS downgraded its investment rating but sharply rebounded on news of plans to produce $24,000 electric vehicles in India, closing up 3.48%. Chinese companies Alibaba, JD.com, and Pinduoduo also rose, supported by China's announcement of domestic demand and private enterprise support measures.

On the previous day, the Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.92%, and the MSCI Emerging Markets Index ETF increased by 1.36%. Eurex KOSPI 200 futures rose 0.16%. Considering this, the KOSPI index is expected to start the day with a rise of around 0.3%.

Seosangyoung, a researcher at Mirae Asset Securities, said, "The rise in the New York stock market despite concerns about an economic slowdown will have a positive impact on the domestic stock market." He added, "In particular, China's economic stimulus policies, such as the announcement of measures to activate domestic demand and ease regulations on private enterprises through the Politburo meeting, will positively influence investor sentiment."

However, he noted, "Of course, the extreme concentration phenomenon is a burden, and if this trend is resolved, increased volatility is inevitable." He also added, "Furthermore, the accelerating economic slowdown in the U.S. and Eurozone poses a burden on the domestic stock market."

Han Ji-young, a researcher at Kiwoom Securities, said, "The price and supply-demand changes of secondary battery-related stocks will be a key point to watch today." She analyzed, "The fact that traditional cyclical stocks such as those in the POSCO group have surged sharply in a short period may stimulate some market participants' desire to realize profits. Therefore, it is appropriate to prepare for supply-demand volatility in secondary battery stocks, including POSCO and EcoPro group stocks, today as well."

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