[Good Morning Stock Market] Tesla Surge Boosts... KOSPI Expected to Start Higher

[Image source=Yonhap News]

On the 12th, the KOSPI is expected to start with a slight rise.

On the previous day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,663.72, up 87.13 points (0.25%) from the previous session. The Standard & Poor's (S&P) 500 index rose 29.97 points (0.67%) to 4,487.46, and the Nasdaq index closed at 13,917.89, up 156.37 points (1.14%) from the previous session.

Ahead of the August CPI data to be released on the 13th, investor sentiment improved as stocks such as Tesla and Qualcomm surged significantly. Tesla jumped more than 10% thanks to Morgan Stanley's positive evaluation of Tesla's supercomputer (Dojo) and a report suggesting its market capitalization could increase by about $500 billion.

Qualcomm rose after announcing a contract to supply 5G modems for smartphones to Apple until 2026. On the other hand, aircraft parts maker RTX plunged following an announcement that it could incur losses of up to $3.5 billion due to the recall of hundreds of Pratt & Whitney jet engines over the next few years.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) and MSCI Emerging Markets Index ETF fell by 1.6% and 1.24%, respectively. Meanwhile, Eurex KOSPI 200 futures rose 0.38%. Considering this, the KOSPI is expected to start with an increase of around 0.4% to 0.7%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "The domestic stock market is showing mixed performance across sectors amid cautious sentiment ahead of major economic indicators such as U.S. inflation and real economy data releases. Since September, the top sectors for net foreign buying have been semiconductors, machinery, and healthcare, which have recently led the strength in robotics and pharmaceutical & healthcare sectors." He added, "IT home appliances including secondary batteries and the chemical sector have declined by -6.4% and -8.5%, respectively, this month due to net selling by foreigners and institutions."

There is also analysis that the Tesla issue will impact the domestic stock market. Han Ji-young, a researcher at Kiwoom Securities, said, "Attention should be paid to the news that Morgan Stanley raised the value of Tesla's supercomputer Dojo, which develops AI and autonomous driving software, to $500 billion." She predicted, "This will improve investor sentiment in AI and autonomous driving-related sectors, where momentum and supply-demand have recently shifted in the domestic stock market." However, she analyzed, "For domestic secondary battery stocks, which have tended to be linked to Tesla's stock price, investor sentiment has become relatively fragile due to recent consecutive price adjustments. Therefore, on this day, these sectors may experience increased supply-demand volatility as Tesla-related positive news and concerns over further price corrections coincide."