[Good Morning Stock Market] 'Again 3300'

The KOSPI surpassed the 3,300 mark for the first time in history. On the 25th, the KOSPI index opened at 3,289.18, up 3.08 points (0.09%), and extended its gains to break the intraday record of 3,292.27 set the previous day. The photo shows the Hana Bank dealing room in Jung-gu, Seoul, on that day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] As the US stock market showed strength on expectations of economic recovery, expectations for the domestic stock market have also increased. After rising for three consecutive trading days and then falling on the 5th, the domestic stock market is expected to challenge the 3300 level once again amid these optimistic sentiments.

On the 5th (local time), the Dow Jones Industrial Average rose 271.58 points (0.78%) to close at 35,064.25, the S&P 500 increased by 26.44 points (0.60%) to 4,429.10, and the Nasdaq rose 114.58 points (0.78%) to finish at 14,895.12.

The key focus of the market that day was employment data. Weekly initial jobless claims decreased by 14,000 from the previous week to 385,000, which boosted the market's upward momentum. The US 10-year Treasury yield recovered to the 1.21% range. This yield had fallen to 1.13%, the lowest level since February, the day before due to concerns over delays in the labor market recovery. Reports that the US Senate could finalize a $1 trillion infrastructure investment bill that day also contributed to the market boost.

Such optimism toward risk assets is expected to influence the domestic stock market as well. Sangyoung Seo, a researcher at Mirae Asset Securities’ Media Content Department, said, "Although the Korean stock market fell the previous day due to hawkish remarks from the Federal Reserve Vice Chair, the rise in the US stock market is a positive factor for the domestic market."

He added, "The rise in international oil prices and market interest rates can also be interpreted as an increased preference for risk assets," and forecasted, "Today, the KOSPI is expected to start with a rise of around 0.5% and then climb further, led by cyclical stocks, challenging the 3300 level."

However, he noted, "The fact that AMD, a US semiconductor company whose stock had been rising due to individual factors, dropped by 5.41%, and the Philadelphia Semiconductor Index fell by 0.36% is a burden."

Regarding individual stocks today, attention will focus on how the market digests the mixed valuation opinions following the listing of KakaoBank. Additionally, with the US government reportedly set to announce an executive order requiring automakers to increase the share of electric vehicle sales to 50% by 2030, it will be important to watch the stock price movements of domestic electric vehicle value chain companies.

Ji-young Han, a researcher at Kiwoom Securities, said, "The Korean stock market is expected to show an upward trend due to the recovery of expectations for economic normalization in developed countries and the continued preference for risk assets following the strong US stock market." She also noted, "The won-dollar exchange rate falling from the 1150 won level to the 1140 won level is a factor expected to improve foreign investor supply conditions."