KOSPI Surges on Expectations of End to US Interest Rate Hikes... Approaching 2490 Level

The KOSPI surged over 2%, approaching the 2490 level. This was influenced by expectations that the interest rate hike cycle would come to an end following news of a slowdown in U.S. inflation indicators.

[Image source=Yonhap News]

On the 15th, the KOSPI closed at 2486.67, up 53.42 points (2.20%) from the previous trading day.

The rise in the KOSPI on this day is interpreted as reflecting expectations that the Federal Reserve's (Fed) interest rate hikes will end, following the U.S. Consumer Price Index (CPI) inflation rate coming in lower than market expectations. On the 14th (local time), the U.S. Department of Labor announced that the October CPI rose 3.2% year-on-year. This was a slowdown from the previous month's 3.7% increase and lower than the market forecast of a 3.3% rise. As a result, the market judged that the Fed's interest rate hikes are likely to conclude.

By investor type, foreigners and institutions were net buyers of 547.1 billion KRW and 1.0915 trillion KRW, respectively. Conversely, individuals were net sellers of 1.612 trillion KRW.

Most sectors rose. Transportation equipment, services, machinery, and medical precision sectors increased by more than 3%. Additionally, construction, electrical and electronics, manufacturing, chemicals, transportation and warehousing, and pharmaceuticals rose by more than 1%. On the other hand, insurance and food and beverages fell by 1.26% and 0.77%, respectively.

Among the top market capitalization stocks, Samsung Electronics closed at 72,200 KRW, up 1,400 KRW (1.98%) from the previous trading day. Hyundai Motor and Kia jumped more than 4%. Along with these, LG Energy Solution, SK Hynix, LG Chem, NAVER, Samsung SDI, and Celltrion rose more than 3%.

On the Korea Stock Exchange, 752 stocks rose, including two stocks?CI Tech and Woongjin?that hit the upper price limit. Meanwhile, 143 stocks declined without hitting the lower limit, and 41 stocks remained unchanged.

The KOSDAQ closed at 809.36, up 15.17 points (1.91%) from the previous trading day, reclaiming the 800 level.

By investor type, foreigners and institutions were net buyers of 159.4 billion KRW and 13.2 billion KRW, respectively. Conversely, individuals were net sellers of 176.9 billion KRW.

By sector, telecommunications services and semiconductors rose more than 3%. Additionally, distribution, paper and wood, machinery equipment, transportation equipment parts, information devices, and software rose more than 2%. On the other hand, textiles and apparel fell 1.27%.

Among the top market capitalization stocks, EcoPro BM closed at 250,000 KRW, up 1,000 KRW (0.40%) from the previous trading day. Alteogen surged 10.38%, and Celltrion Pharm also rose 9.46%. Additionally, L&F, Rainbow Robotics, HPSP, and Classys rose more than 4%. Conversely, POSCO DX fell 3.40%.

On the KOSDAQ, 1,268 stocks rose, including five stocks such as Tegosience and Hurim Atech that hit the upper price limit. Meanwhile, 294 stocks declined without hitting the lower limit, and 67 stocks remained unchanged.

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