[Good Morning Stock Market] Increased Volatility by Stock... KOSPI Expected to Start Slightly Lower

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On the 7th, the KOSPI is expected to experience increased volatility due to the decline in the U.S. stock market and profit-taking selling pressure in secondary battery stocks.

On the 4th (local time), the New York Dow Jones Industrial Average closed at 35,065.62, down 150.27 points (-0.43%) from the previous session. The Standard & Poor's (S&P) 500 index fell 23.86 points (-0.53%) to 4,478.03, and the tech-heavy Nasdaq index dropped 50.48 points (-0.36%) to 13,909.24.

All three major indices declined due to the credit rating downgrade of the U.S. by Fitch Ratings. The July nonfarm payroll report released that day supported expectations that the labor market overheating is gradually easing, but investors took the opportunity to realize profits, reflecting the stock market's upward trend since June.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) fell 0.95%, and the MSCI Emerging Markets Index ETF dropped 0.12%. Eurex KOSPI 200 futures declined 0.39%. Accordingly, the KOSPI is expected to open down about 0.3%.

Seosangyoung, a researcher at Mirae Asset Securities, analyzed, "The U.S. stock market turned downward after early gains due to profit-taking selling pressure in the latter part of the session, which burdens the domestic stock market. Recently, profit-taking selling pressure centered on the secondary battery sector has increased volatility by sector and stock, and this trend may expand further."

However, researcher Seosangyoung added, "The weak U.S. dollar and strong Korean won may ease the burden on foreign demand. Considering this, the KOSPI is expected to open down about 0.3%, followed by a continued process of absorbing selling volume."

Kiwoom Securities forecasted that the domestic stock market this week will continue to experience volatility influenced by ▲ U.S. inflation indicators such as July CPI and University of Michigan inflation expectations ▲ major Chinese economic indicators such as exports, imports, and producer prices ▲ whether EcoPro will be included in the MSCI index ▲ corporate earnings of companies like HYBE and YG Entertainment.

Han Jiyoung, a researcher at Kiwoom Securities, stated, "The MSCI quarterly review result deciding EcoPro's inclusion will be important in the domestic stock market. Also, with earnings announcements from entertainment stocks, which previously attracted market attention before the secondary battery FOMO (fear of missing out on investment opportunities), scheduled one after another, this week’s domestic stock market is expected to be influenced by a tug-of-war among major thematic stocks."

Meanwhile, the 1-month New York Non-Deliverable Forward (NDF) USD/KRW exchange rate stood at 1,304.03 won, reflecting a projected 7 won decline in the USD/KRW exchange rate at the opening.

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