[Good Morning Stock Market] US Stock Market Rebounds on Dollar Weakness... KOSPI Expected to Start Higher

[Image source=Getty Images Yonhap News]

The New York stock market, which had been weak due to rising U.S. bond yields and economic uncertainty, rebounded influenced by a weaker dollar, and the KOSPI is also expected to start higher on the 31st.

On the 30th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,928.96, up 511.37 points (1.58%) from the previous session. The Standard & Poor's (S&P) 500 index rose 49.45 points (1.20%) to 4,166.82, and the Nasdaq index closed at 12,789.48, up 146.47 points (1.16%).

The U.S. stock market saw strong bargain buying, with major indices rising by more than 1%. The weaker dollar and preference for risk assets were key factors. Germany, the largest economy in the Eurozone, showed better-than-expected third-quarter gross domestic product (GDP) growth and preliminary inflation figures for this month, and reports that the Bank of Japan (BOJ) may adopt a more flexible approach to its yield curve control (YCC) policy led to the euro and yen strengthening against the dollar. Additionally, with the U.S. Treasury scheduled to release its quarterly net borrowing amount and plans this week, concerns about an expanded supply have contributed to the dollar's weakness.

All 11 sectors of the S&P 500 also rose. Communication Services, which had a large decline last week, led the gains with a 2.06% increase. Financials (1.71%), Consumer Staples (1.55%), and Consumer Discretionary (1.26%) also rose by more than 1%. Among big tech stocks, Amazon (3.89%), Microsoft (2.27%), Alphabet (1.90%), and Apple (1.23%) all increased. Meanwhile, international oil prices fell by more than 3%, while international gold prices surpassed $2,000 for the first time since July, showing contrasting movements.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) and MSCI Emerging Markets Index ETF rose 2.40% and 1.04%, respectively. Eurex KOSPI 200 futures increased by 0.50%. Accordingly, the KOSPI is expected to start higher by around 0.8% to 1.2%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Attention should be paid to foreign investors' preference for risk assets amid broad dollar weakness," adding, "Foreign investors have recorded nearly 3 trillion won in net sales in the domestic stock market this month, with about 2 trillion won concentrated particularly in IT home appliances (8.8%) and semiconductors (25.7%), which have large market capitalization weights."

He continued, "This is due to significant concerns about demand outlook. Hints may be found at the Samsung Electronics investor relations (IR) meeting scheduled for 10 a.m. today," and added, "It is also necessary to pay attention to intraday events such as fluctuations in the dollar index following BOJ monetary policy results and the manufacturing and services Purchasing Managers' Index (PMI) indicators for China, which are scheduled to be announced in the morning."