[Good Morning Stock Market] Will ARM's Listing Bring a Halo Effect? "KOSPI Expected to Start Higher"

[Image source=Reuters Yonhap News]

The Korean stock market is expected to start higher on the 15th. It is anticipated to be influenced by the strong debut of British semiconductor design company ARM's IPO on the U.S. stock market and better-than-expected U.S. retail sales data, which helped U.S. stocks close higher.

On the previous day (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,907.11, up 331.58 points (0.96%) from the previous session. The large-cap S&P 500 index rose 37.66 points (0.84%) to 4,505.10, and the tech-heavy Nasdaq index gained 112.47 points (0.81%) to close at 13,926.05.

The U.S. stock market was focused on the debut of ARM, considered a major IPO in the second half of this year. The stock opened at $56.10 per share, 10% above the offering price of $51. It showed steady performance throughout the day and closed up 24.7% on its first day of trading. ARM's listing is seen as a revival signal for the IPO market, which had been frozen due to the Federal Reserve's aggressive tightening measures. It is expected to generate positive investor sentiment in the Korean stock market as well.

Economic indicators released the same day demonstrated the strong resilience of the U.S. economy. The August Producer Price Index (PPI) and retail sales exceeded market expectations, and new unemployment claims fell to their lowest level since late February. As a result, U.S. Treasury yields rose. In particular, the euro weakened due to a downgrade in Eurozone economic growth forecasts and expectations of the end of interest rate hikes, pushing the dollar index close to its yearly high at 105.33.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The KOSPI is expected to start up about 0.2% to 0.5% and then focus on China's real economy indicators released during the session." He added, "The halo effect of ARM is expected to bring optimistic prospects for the semiconductor market and a favorable wind for the domestic IPO market in the second half of the year."