KOSPI Falls Below 2600... 'Black Monday' Becomes Reality [3-Minute Brief]

[At a Glance]
① Exchange Rate Enters the 1,350 Won Range
② This Week Is the Biggest Challenge for Power Supply
③ Focus on Strength in Pharmaceutical and Bio Stocks

MARKET INDEX

- US New York stock market plunged following Asian markets
- Combined with capital outflow from unwinding of Yen carry trades
- Decline narrowed due to improvement in service sector economic indicators

TOP 3 NEWS

■ 'Black Monday' materializes... KOSPI falls below 2600

- Fear of 'Black Monday' becomes reality
- Started with a 2.4% drop, then widened losses
- Due to intensified risk-averse sentiment

■ Exchange rate enters 1350 won range... "Expected to fall to low 1300 won range"

- Exchange rate volatility increases amid weak US economic indicators
- Interest rate decisions from major countries including US, UK, Japan
- "If Fed makes a 'big cut', further decline is possible"

■ Heatwave, tropical nights, and industrial sector return from vacation... This week is the biggest power demand challenge

- Peak demand expected on weekdays between 5-6 PM this week
- Forecasted to be the highest demand this summer
- Ministry of Industry fully mobilizing to respond to power peak

On the 5th, dealers were working in the dealing room at the headquarters of Hana Bank in Jung-gu, Seoul, as the KOSPI and KOSDAQ indices plummeted more than 8%, triggering circuit breakers (CB) in both markets. It is the first time in 4 years and 5 months since March 13, 2020, during the outbreak of the novel coronavirus disease (COVID-19), that circuit breakers were triggered simultaneously in both the KOSPI and KOSDAQ markets. Photo by Kang Jin-hyung aymsdream@

the Chart: Semiconductors decline, will 'Pharmaceutical & Bio stocks' continue to strengthen?

- Pharmaceutical & Bio leading the market instead of semiconductors
- Benefiting from the passage of the US Biosecurity Act
- "Healthcare growth in Korea expected to rise if Trump is elected"

Profitable Law

■ 'Bold change' vs 'Maximum caution'... Two Supreme Court Justices retire

- Justices Kim Seonsu and Lee Dongwon retired on the 1st
- Expressed contrasting views even at retirement ceremony
- "Responding to changing times" vs "Need to be cautious"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024080513403759012

■ Accelerated prosecution 'underdog's turnaround' approved

- Investigation revived after years of stagnation
- Completed face-to-face questioning of Kim Geonhee and Kim Manbae
- "Appears to be a turnaround led by non-mainstream prosecutors"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024080513415067888

■ Hanmi Pharmaceutical management dispute reaches court, provisional seizure approved

- Lawsuit over Hanmi Pharmaceutical Group's management rights dispute
- Court decision makes asset sales difficult
- Likely to affect attracting external investors
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024080513433277473

※ 'Profitable Law', a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Terms in the News: Dead fish gutted... "The entire ocean is covered in plastic"

- Plastic particles flowing into the ocean
- Causing 'plastic smog' phenomenon
- Plastic and pollutants... ultimately affecting 'humans'

Today's Key Schedule

○ Domestic

- 6th: KOSDAQ Euracle subscription, expected public offering price 18,000~21,000 won

- 6th: KOSDAQ iBeam Technology listing, public offering price 10,000 won

- Jeonbuk Hyosung Harrington Place Gunsan
- Seoul Raemian Leventus
- Daejeon Doan Prugio Diadel (31BL)
- Daejeon Doan Prugio Diadel (29BL)
- Gyeonggi Goyang Janghyang Atera (B3)
- Incheon Geomdan Atera Xi (AB21-1)

○ Overseas
- 08:30 Japan June Household Spending
- 13:30 Australia August Interest Rate Decision
- 17:30 UK July Construction Purchasing Managers Index
- 21:30 US June Trade Balance
- 21:30 Canada June Trade Balance
- 23:30 US Atlanta Fed Q3 GDPNow

◇Lunch & Commute Weather

○ Lowest temperature 28℃(0℃) ｜Highest temperature: 33℃(▼1℃)
○ Precipitation probability 10% in the morning｜60% in the afternoon
○ Fine dust Good in the morning｜Good in the afternoon

3 minutes is OK, essential time-efficient economic news. Published daily at 8 AM.

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