[Good Morning Stock Market] "Rebounded US Stock Market"... KOSPI Expected to Start Higher

The KOSPI is expected to start higher on the 2nd. Although Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), dismissed the March rate cut speculation, causing the New York stock market to plunge, it managed to rebound. Additionally, Korea's January exports increased, continuing the recovery trend, which is also expected to have a positive effect.

On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 376.54 points (0.97%) from the previous day to close at 38,519.84. The S&P 500 index, centered on large-cap stocks, increased by 60.54 points (1.25%) to 4,906.19, and the tech-heavy Nasdaq index closed at 15,361.64, up 197.63 points (1.3%).

The U.S. stock market, which had plunged the previous day due to Powell's dismissal of the March rate cut speculation, closed higher thanks to a tech rally and inflow of rebound buying. Notably, Meta, Amazon, and Apple all reported earnings that exceeded market expectations after the market closed.

Along with this, key related indicators also improved. The final S&P U.S. Manufacturing Purchasing Managers' Index (PMI) recorded 50.7, surpassing the preliminary figure of 50.3 and December's 47.9. A reading above 50 indicates an expansionary economic trend. The Institute for Supply Management (ISM) separately announced the January U.S. Manufacturing PMI at 49.1%, an improvement from last month's 47.1%.

The Korean stock market is expected to start higher. The Morgan Stanley Capital International (MSCI) Korea Index ETF fell 3.1%, and the MSCI Emerging Markets Index ETF dropped 1.0%. Considering this, the KOSPI is expected to open 0.3~0.5% higher.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "January exports increased by 21% compared to the same month last year, marking the largest increase in 21 months," adding, "Semiconductor exports rose by more than 56%, and transportation equipment (automobiles) recorded an increase for 19 consecutive months." He continued, "The government's ongoing 'Corporate Value-Up Program' is expected to create a favorable investment environment for large-cap stocks."