KOSPI rose more than 2%, approaching the 2490 level. The expectation that the interest rate hike cycle will end, following the slowdown in U.S. inflation indicators, appears to have influenced the market.
On the 15th, KOSPI closed at 2486.67, up 53.42 points (2.20%) from the previous trading day.
The rise in KOSPI on this day is interpreted as reflecting expectations that the Federal Reserve's (Fed) interest rate hikes will end, as the U.S. Consumer Price Index (CPI) inflation rate came in lower than market expectations. On the 14th (local time), the U.S. Department of Labor announced that the October CPI rose 3.2% year-on-year. This was a slowdown from the previous month's 3.7% increase and lower than the market forecast of a 3.3% rise. As a result, the market judged that the Fed is likely to end its rate hikes.
The core CPI inflation rate, which excludes the highly volatile energy and food sectors, also continued its slowdown at 4.0% year-on-year. This further spread the perception that the Fed's interest rate hike cycle has effectively ended.
According to the Chicago Mercantile Exchange (CME) FedWatch, the market sees about a 98% chance that the Fed will hold rates steady in December. Following the slowdown in CPI inflation, the 10-year U.S. Treasury yield, which serves as a benchmark for global bond rates, fell below 4.5% to the 4.4% range. The dollar index, which measures the value of the dollar against six major currencies, also dropped 1.48%.
Choi Yoo-jun, a researcher at Shinhan Financial Investment, explained, "There were overlapping positive factors in the domestic stock market: the U.S. October CPI inflation rate came in below expectations, raising hopes for a pause in rate hikes, and the U.S. House of Representatives overwhelmingly passed a temporary budget for next year. Additionally, the Chinese government's plan to inject 1 trillion yuan to stimulate housing demand was a positive factor."
By investor type, foreigners and institutions were net buyers of 547.1 billion KRW and 1.0915 trillion KRW, respectively. In contrast, individuals were net sellers of 1.612 trillion KRW.
Most sectors rose. Transportation equipment, services, machinery, and medical precision sectors increased by more than 3%. Construction, electrical and electronics, manufacturing, chemicals, transportation and warehousing, and pharmaceuticals all rose more than 1%. On the other hand, insurance and food and beverages fell by 1.26% and 0.77%, respectively.
Among the top market capitalization stocks, Samsung Electronics closed at 72,200 KRW, up 1,400 KRW (1.98%) from the previous trading day. Hyundai Motor and Kia both jumped more than 4%. LG Energy Solution, SK Hynix, LG Chem, NAVER, Samsung SDI, and Celltrion also rose more than 3%.
On the day, 752 stocks rose on the KOSPI market, including two stocks?CI Tech and Woongjin?that hit the upper price limit. Meanwhile, 143 stocks fell without any hitting the lower limit, and 41 stocks remained unchanged.
KOSDAQ closed at 809.36, up 15.17 points (1.91%) from the previous trading day, recovering above the 800 level.
By investor type, foreigners and institutions were net buyers of 159.4 billion KRW and 13.2 billion KRW, respectively. Individuals were net sellers of 176.9 billion KRW.
By sector, telecommunications services and semiconductors rose more than 3%. Distribution, paper and wood, machinery equipment, transportation equipment parts, information devices, and software all increased more than 2%. Conversely, textiles and apparel fell 1.27%.
Among the top market capitalization stocks, EcoPro BM closed at 250,000 KRW, up 1,000 KRW (0.40%) from the previous trading day. Alteogen surged 10.38%, and Celltrion Pharm also rose 9.46%. Additionally, L&F, Rainbow Robotics, HPSP, and Classys all rose more than 4%. On the other hand, POSCO DX fell 3.40%.
On KOSDAQ, 1,268 stocks rose, including five stocks such as Tegosience and Hurim Atech that hit the upper price limit. Meanwhile, 294 stocks fell without any hitting the lower limit, and 67 stocks remained unchanged.
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