[Good Morning Stock Market] US Nasdaq 100 Hits Highest in 22 Months... KOSPI Expected to Start Higher

[Image source=Yonhap News]

On the 21st, the KOSPI is expected to start higher, supported by the strong performance of the US Nasdaq index.

On the previous day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 203.76 points (0.58%) to close at 35,151.04. The Standard & Poor's (S&P) 500 index increased by 33.36 points (0.74%) to 4,547.38, and the Nasdaq index jumped 159.05 points (1.13%) to 14,284.53.

The New York stock market extended its rally following news that former OpenAI CEO Sam Altman might join Microsoft and the successful high-demand auction of the 20-year US Treasury bonds. Notably, the Nasdaq 100 index reached its highest level in 22 months.

The US 10-year Treasury yield recorded 4.4%, marking its lowest level in two months, while the dollar index fell to the low 103 range, its lowest since mid-August. Due to the weaker dollar, emerging market currencies rose to their highest levels since early August.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 2.02%, and the MSCI Emerging Markets Index ETF increased by 1.24%. Eurex KOSPI 200 futures climbed 0.73%. Considering these factors, the KOSPI is expected to open 0.6% to 1.0% higher.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, “The decline in US Treasury yields and the weakening dollar index will further strengthen foreigners' preference for risk assets. Especially, the strength of IT centered around AI creates a favorable environment for the domestic stock market.” He also noted, “The export statistics for the 1st to 20th, scheduled to be released today, are noteworthy as exports from the 1st to 10th increased by 3.2% compared to the same period last year. However, the KOSPI may face technical resistance near the 2,500 level.”

Han Ji-young, a researcher at Kiwoom Securities, explained, “Foreign investors, who had net sold 7.9 trillion won in the KOSPI over five months from June to October, have turned to net buying of 2.5 trillion won in November alone, driving up the prices of large domestic stocks.” She added, “Korea ranked among the top in Asia for net inflows of global fund money, second only to Taiwan.” She further stated, “Both the Taiwan and Korean stock markets have semiconductor-centered industrial structures, which seems to be attracting Asian-focused global funds to these two countries. Regardless of supply-demand disruptions such as short-selling bans, foreigners’ views on the semiconductor sector are becoming increasingly positive.”

Meanwhile, the 1-month Non-Deliverable Forward (NDF) won-dollar exchange rate stood at 1,286.46 won. Reflecting this, the won-dollar exchange rate is expected to open 6 won lower today.