[Good Morning Stock Market] Inflation Watch... Flat Start Expected

On the 7th, the KOSPI opened at 3,244.59, up 4.51 points (+0.14%) from the previous trading day. Dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Junho] Amid continued net selling by foreigners on the KOSPI over the past two trading days, individual investors also turned to net selling after two days, drawing attention to the direction of the stock market on the 9th. The U.S. stock market maintained a cautious stance ahead of the Consumer Price Index (CPI) announcement.

On the 8th (local time), the Dow Jones Industrial Average closed down 30.42 points (0.09%) at 34,599.82. The S&P 500 index rose 0.74 points (0.02%) to 4,227.26, and the Nasdaq index closed up 43.19 points (0.31%) at 13,924.91. Following the previous day, there was no significant fluctuation, reflecting a cautious stance. Investors appear to be waiting for the May CPI report to be released on the 10th.

However, Korea Investment & Securities' Investment Strategy Department noted that although job postings in April reached a record high, hiring fell short of expectations due to labor shortages, widening the gap between job postings and hires. They assessed that the recovery in the labor market will be gradual, and optimism regarding major countries' monetary policy meetings is expanding.

The Nasdaq, led by technology stocks, started strong but gains were limited due to selling pressure triggered by a sharp drop in Bitcoin, Tesla's decline, and difficulties in infrastructure negotiations.

On the day, the U.S. 10-year Treasury yield fell to its lowest level since March 10, dropping 0.03 percentage points to 1.538%. During the session, it fell as low as 1.51%. A decline in bond yields indicates a rise in bond prices.

Influenced by the U.S. stock market, the Korean stock market was expected to start flat. Seo Sang-young, a researcher at Mirae Asset Securities Research Center, said, "The strength in economically sensitive sectors such as travel, leisure, and airlines due to economic normalization in the U.S. stock market is expected to continue in the Korean stock market." He added, "However, changes are expected to occur more in individual stock issues rather than in the index." Researcher Seo predicted a flat start for the KOSPI. He also expected Eurex KOSPI 200 futures to open down 0.08%.