[Good Morning Stock Market] KOSPI Expected to Start Higher... Cautious Sentiment Likely Ahead of Holiday

[Image source=Yonhap News]

The KOSPI is expected to start higher on the 6th. However, limited movement is anticipated ahead of the Hangul Day holiday closure on the 9th.

On the 5th (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 33,119.57, down 9.98 points (0.03%) from the previous trading day. The large-cap S&P 500 index fell 5.56 points (0.13%) to 4,258.19, and the tech-heavy Nasdaq index dropped 16.18 points (0.12%) to 13,219.83.

The New York market was on edge awaiting the Labor Department's employment data release. The market showed volatility due to conflicting employment reports from the Labor Department and private job data providers. As a result, investors appeared to adopt a wait-and-see approach, preferring to make decisions after reviewing the September nonfarm payroll results.

Han Ji-young, a researcher at Kiwoom Securities, said, "The U.S. market continued its decline from early trading due to a rebound in interest rates following strong unemployment data. Later, the decline narrowed thanks to inflows of bargain buying and dovish remarks from Federal Reserve officials suggesting limited need for further rate hikes."

Kim Seok-hwan, a researcher at Mirae Asset Securities, also explained, "The U.S. market started lower due to improved employment conditions and trade balance but ended mixed after fluctuating on reassuring comments from key Fed officials."

The KOSPI is expected to open up about 0.4 to 0.7%. However, it is likely to show limited movement. This is due to the upcoming Hangul Day holiday closure and the forthcoming U.S. employment report. Researcher Han Ji-young forecasted, "Uncertainties such as the Hangul Day holiday closure on the 9th, the U.S. employment report results, and the possibility of weakness in the Chinese market reopening after the National Day holiday following six trading days will act as burdens, leading to a limited market trend."