Concerns Over "US Interest Rate Strength Continues" Push Exchange Rate Past 1,340 Won

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The KOSPI index closed lower for the fifth consecutive trading day as institutions recorded a selling dominance. The 2,500 level, which was breached during the session, was recovered as foreign selling pressure eased.

On the 17th, the KOSPI index closed at 2,519.85, down 5.79 points (0.23%) from the previous trading day. The index opened at 2,512.92, down 12.72 points (0.50%), and fell further to 2,482.06, widening the decline. This was the first time in three months since May 17 that the KOSPI fell below the 2,500 mark during the session. However, as foreign selling momentum weakened, the decline narrowed and the index touched the 2,520 level during the session. Individuals bought about 85.5 billion KRW worth, while institutions sold about 97.7 billion KRW. Foreigners net sold about 100 million KRW.

Among the top market capitalization stocks, POSCO Future M rose 3.41%, LG Energy Solution 2.66%, POSCO Holdings 1.28%, and Samsung SDI 1.16%. On the other hand, NAVER fell 2.02%, Samsung Biologics 1.15%, SK Hynix 0.86%, Hyundai Motor 0.54%, LG Chem 0.51%, and Samsung Electronics 0.45%.

By sector, service industries (-1.43%), pharmaceuticals (-1.28%), paper & wood (-1.18%), textiles & apparel (-1.09%), and electric & gas utilities (-1.04%) recorded weakness. Medical precision (1.05%), electrical & electronics (0.33%), steel & metals (0.21%), and machinery (0.13%) sectors rose.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Following the release of the July Federal Open Market Committee (FOMC) minutes, concerns about interest rate hikes and economic instability from China intensified," adding, "The KOSPI and KOSDAQ fell about 1.7% intraday but narrowed losses later."

The July FOMC minutes showed that the majority of Federal Reserve (Fed) participants observed "significant upside risks to inflation continuing," suggesting that further monetary tightening might be necessary. This heightened concerns over additional U.S. benchmark interest rate hikes. Additionally, worries about the Chinese economy expanded due to the recent suspension of bond trading by major Chinese real estate developer Country Garden (Biguiyuan) and weak economic indicators.

On the day, the USD/KRW exchange rate closed at 1,342.0 KRW, up 5.1 KRW from the previous day. The dollar strengthened amid growing expectations that the Fed's tightening stance may continue for an extended period.

The KOSDAQ index closed at 886.04, up 7.75 points (0.88%) from the previous trading day. After opening down 3.14 points (0.36%) at 875.15 and falling to 863.32, it reversed to an upward trend. Foreigners and institutions net bought about 34 billion KRW and 176.7 billion KRW respectively, while individuals net sold about 198.5 billion KRW.

Among the top market capitalization stocks, secondary battery and entertainment stocks showed strength. Ecopro rose 8.90%, POSCO DX 7.96%, L&F 6.82%, Ecopro BM 4.78%, JYP Ent. 4.37%, Pearl Abyss 0.72%, and SM 0.30%. HLB fell 1.47%, and Celltrion Healthcare, which is being merged into Celltrion, dropped 1.08%. Celltrion Pharm also declined 0.89%.

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