[Asia Economy Reporter Son Sun-hee] On the 12th, the KOSPI started the session with a rise but then took a breather, showing a flat trend. The KOSDAQ also started with a simultaneous rise but turned to a decline.
As of 10:07 a.m., the KOSPI stood at 2,360.68, up 1.15 points (0.05%) from the previous trading day. In the KOSPI market, individuals and foreigners were net buyers of 40.1 billion KRW and 24.5 billion KRW respectively, while institutions were net sellers of 58.6 billion KRW.
At the same time, the KOSDAQ index was at 708.36, down 1.41 points (-0.20%) from the previous session. The KOSDAQ started the session with a rise but turned to a decline. In the Seoul foreign exchange market, the won/dollar exchange rate recorded 1,244.50 KRW, down 5.50 KRW.
Employees working in the dealing room of Hana Bank in Jung-gu, Seoul / Photo by Hyunmin Kim kimhyun81@
Overnight, the U.S. stock market closed higher across the board. On the 11th (U.S. local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 268.91 points (0.80%) to close at 33,973.01. The Standard & Poor's (S&P) 500 index increased by 50.36 points (1.28%) to 3,969.61, and the Nasdaq index rose 189.04 points (1.76%) to 13,931.67.
The overall rise in the U.S. stock market was interpreted as reflecting expectations that inflation would slow for the sixth consecutive month ahead of the Consumer Price Index (CPI) announcement the next day. Experts expect the December CPI to decrease from 7.1% (year-over-year) in the previous month to 6.5%.
This expectation led to a decline in government bond yields in the market, which in turn drove strength in some large technology stocks. Amazon surged 5.81% amid positive evaluations of future profit growth due to a weaker dollar, restructuring, and falling oil prices. Tesla rose 3.68% following news that a contract to build a production facility with a capacity of one million units in Indonesia is imminent. Additionally, Tesla announced plans to invest funds to expand its factory in Austin, Texas, and the fact that Goldman Sachs selected Tesla as the 'best stock of the year' was also interpreted positively.
As Tesla's stock price rose, investment sentiment toward electric vehicle industry-related stocks improved, leading to price increases in Rivian (3.83%) and QuantumScape (8.26%).
The inflow of buying interest centered on large technology stocks in the U.S. stock market and the resulting rise is also seen as having a positive impact on the domestic stock market. The government's efforts to manage prices ahead of the Lunar New Year holiday, increasing downward pressure on inflation, are also favorable factors.
However, the announcement by market research firm IDC on the 10th (U.S. local time) that global PC shipments plunged 28.1% in the fourth quarter of last year poses a burden as it could negatively affect the semiconductor sector. Nevertheless, IDC also forecasted that the PC market would return to growth by the end of this year, suggesting the impact will be limited.
Seo Sang-young, head of the Media Content Division at Mirae Asset Securities, said, "The Korean stock market is expected to continue a solid trend centered on electric vehicle-related industries and renewable energy sectors, similar to the characteristics of the U.S. stock market."
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