[Good Morning Stock Market] Nasdaq Rebounds After 5 Trading Days... Kospi Expected to Start Higher

The domestic stock market is expected to start higher on the 22nd. This is thanks to the Nasdaq rebounding with a counter-buying trend after five trading days. However, since there were no particularly new developments influencing the market, a differentiated flow centered on individual stocks is expected.

[Image source=Yonhap News]

On the 21st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,463.69, down 36.97 points (0.11%) from the previous trading day. Meanwhile, the large-cap focused S&P 500 index rose 30.06 points (0.69%) to 4,399.77, and the tech-heavy Nasdaq index increased by 206.81 points (1.56%) to 13,497.59. The Nasdaq index succeeded in rebounding after five trading days.

Mirae Asset Securities forecasted that the KOSPI would start about 0.5% higher compared to the previous trading day. Seosangyoung, a researcher at Mirae Asset Securities, said, "Despite the rise in U.S. Treasury yields, the strong counter-buying centered on Nvidia, Tesla, and others led to a significant rise in the Nasdaq, which will have a positive impact on the Korean stock market. Since the recent decline triggered a counter-buying sentiment resulting in a strong market, related stock groups are expected to show clear strength in the Korean market as well."

In particular, since the New York stock market showed clear strength in semiconductor, electric vehicle, and COVID-19 vaccine-related stocks, attention to these related stock groups is expected to be necessary. Tesla (7.33%), Moderna (9.31%), and Nvidia (8.47%) led the gains. This result came despite the U.S. 10-year Treasury yield soaring well above 4.3%. Additionally, China's strong willingness to stimulate the economy is a positive factor. Although the Chinese stock market was sluggish the previous day despite the People's Bank of China's benchmark interest rate cut, it demonstrated China's strong economic stimulus intent, so the market is expected to remain firm today.

However, the domestic stock market is expected to show differentiated flows by stock. For stocks that led the rise in tech shares, since the information was not new but already known, the possibility of a sustained upward trend is limited. Researcher Seo explained, "With the rise in Treasury yields, the Russell 2000 fell 0.18%, and the Dow Transportation only rose 0.03%, indicating that the surrounding conditions are still not favorable. The Korean stock market will start higher and then focus on the Chinese stock market while individual stock differentiation progresses."