[Good Morning Stock Market] KOSPI Expected to Start Slightly Up... Individual Stocks Market

[Image source=Yonhap News]

On the 4th, the KOSPI is expected to start with a slight rise and continue with a stock-specific market.

On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,837.71, up 115.80 points (0.33%) from the previous session. The Standard & Poor's (S&P) 500 index rose 8.11 points (0.18%) to 4,515.77. The Nasdaq index closed at 14,031.81, down 3.15 points (0.02%) from the previous session.

The New York stock market started higher as the strong nonfarm payrolls data was overshadowed by significant downward revisions for June and July, along with rising unemployment and slowing hourly wages.

However, selling pressure emerged following increases in the ISM manufacturing index's employment and price indices, hawkish remarks from Loretta Mester, President of the Federal Reserve Bank of Cleveland, and record-high international oil prices.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.22%, and the MSCI Emerging Markets Index ETF increased by 1.17%. Eurex KOSPI 200 futures rose 0.09%. Reflecting this, the KOSPI is expected to start the day with an increase of around 0.3%.

Seosangyoung, a researcher at Mirae Asset Securities, analyzed, "The New York stock market remaining flat amid concerns over high inflation due to rising international oil prices will act as a burden on the domestic stock market. Especially, the reversal of the previously falling dollar and government bond yields to an upward trend is a burden on foreign demand." He added, "However, positive news such as the Chinese government's continuous announcement of economic stimulus measures and creditor approval regarding the Country Garden bond repayment delay is favorable. Additionally, the Russell 2000 index rising 1.11% is also a positive factor."

Han Jiyoung, a researcher at Kiwoom Securities, said, "For the time being, the market will continue in a phase where 'improving indicators are bad for the stock market, and slowing indicators are good for the stock market.' During this week’s macro events such as the U.S. Federal Reserve's Beige Book, China’s export-import data, and the Reserve Bank of Australia (RBA) monetary policy meeting, volatility in the stock market may increase due to the impact of interest rates and exchange rates."

She also explained that the price direction of semiconductor-related stocks, including Samsung Electronics, will influence the market. Samsung Electronics surged over 6% last Friday due to news flow related to Nvidia's HBM3 supply. The researcher said, "Expectations for strengthening momentum in semiconductor stocks may cause a concentration of demand in these sectors. The sharp drop in Tesla and sluggish domestic secondary battery exports could cause short-term demand volatility, especially among domestic secondary battery-related stocks."

Meanwhile, the New York Non-Deliverable Forward (NDF) won-dollar exchange rate for one month stood at 1,319.45 won, reflecting that the won-dollar exchange rate is expected to start the day stable.