[Good Morning Stock Market] Kospi Expected to Start Higher Riding on US Tailwind

On the 8th, the KOSPI is expected to start higher influenced by the strong performance of the U.S. stock market.

On the 12th, global stock markets froze due to concerns over the resurgence of COVID-19, causing the KOSPI index to start with a plunge of over 4%. The three major New York stock indices are displayed in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

On that day, at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 38,677.36, up 156 points (0.4%) from the previous session. This is an all-time high. The S&P 500, centered on large-cap stocks, rose 40.83 points (0.82%) to 4,995.06, setting a new record high. The Nasdaq, which focuses on technology stocks, closed at 15,756.64, up 147.65 points (0.95%).

Although the timing of the Federal Reserve's (Fed) interest rate cut outlook has been pushed back, optimistic earnings forecasts drove the stock price gains.

Seokhwan Kim, a researcher at Mirae Asset Securities, explained, "The U.S. stock market rose on the assessment that corporate earnings are strong and the fundamentals of the economy continue to improve. The S&P 500 index, supported by strong performances in IT, consumer discretionary, and communication sectors with large market capitalization weights, repeatedly set historical highs and approached the 5,000 level."

Domestic semiconductor stocks are expected to be influenced by the rising trend of U.S. big tech stocks. Jiwon Kim, a researcher at KB Securities, said, "ARM surged over 37% in after-hours trading on the U.S. stock market due to better-than-expected earnings and increased sales related to artificial intelligence (AI). This is expected to impact domestic semiconductor stocks."

Influenced by the strong U.S. stock market, the KOSPI is expected to start higher. Jihyun Kim, a researcher at Kiwoom Securities, forecasted, "On this day, supported by TSMC's January sales increase and expectations for AI semiconductor demand, the U.S. stock market showed strength centered on large technology stocks, leading to an expected higher start."