"Isn't It Time for a Rebound?.. Why Biden's Moves Are Drawing Attention"

[Asia Economy Reporter Junho Hwang] "Isn't it about time for a rebound?"

Recently, individual investors, known as "gaemi," have often expressed this complaint regarding the stock market, which has been plunging toward the bottom. Despite domestic supply and demand shocks such as individual forced sales and deleveraging having passed their peak, the KOSPI continues to show unstable movements around 2300 points. On the 3rd, Lee Kyung-min, a researcher at Daishin Securities, analyzed in a stock strategy report that the key to reversing the mood lies with U.S. President Joe Biden.

President Biden, facing the midterm elections this November, has recently been struggling with a sharp decline in approval ratings. His government approval rating has dropped to 38.4%, and his favorability as a political leader has also been overtaken by Trump at 43.0% compared to Trump's 43.8%. In the 2024 hypothetical matchup, he has been losing to Trump for two consecutive months.

The main factor dragging down his approval ratings is inflation. 93% of Americans consider inflation their greatest concern and believe it is affecting their lives. Biden's recent visits to Saudi Arabia and other countries ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting can be seen as efforts to alleviate these concerns among the American public.

Particularly noteworthy is his proposal to lift tariffs on China. The Chinese government has also stated that lifting tariffs on China would be positive for the Chinese, American, and global economies. If the tariff removal between the U.S. and China is decided, it is expected to stabilize U.S. prices, calm foreign exchange market volatility, improve the economy and trade, and increase hopes for easing U.S.-China tensions.

Researcher Lee diagnosed, "Given that the recent deepening decoupling of the KOSPI from China is rooted in U.S.-China conflicts, lifting tariffs on China could serve as a trigger point for reversing the KOSPI's mood."