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

The U.S. stock market reached an all-time high driven by the boom in the artificial intelligence (AI) sector. The Korean stock market is also expected to start higher, benefiting from the positive momentum originating in the U.S.

[Image source=Yonhap News]

On the 1st (local time), the Nasdaq index in New York closed at 16,274.94, up 183.02 points (1.14%) from the previous trading day. This is an all-time high closing price. The S&P 500 index also closed at 5,137.08, up 0.80% from the previous day, surpassing the 5,100 mark for the first time. The Dow Jones Industrial Average also ended the session at 39,087.38, up 0.23%.

The record highs in the New York stock market were driven by semiconductors and AI. Nvidia rose 4%, pushing its market capitalization past $2 trillion. Dell surged more than 30% on better-than-expected earnings, citing strong demand for AI servers. The AI boom also boosted semiconductors, with the Philadelphia Semiconductor Index rising over 4% to reach an all-time high.

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 1.3%, and the MSCI Emerging Markets Index ETF increased by 1.2%. Considering this, the KOSPI is expected to start higher by 0.5% to 0.8%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The recovery in South Korea's export economy, centered on semiconductors, is expected to raise expectations for corporate earnings improvements going forward. Despite a shortage of working days in February, semiconductor exports recorded about $10 billion, the second highest ever."

In particular, as the recent situation surrounding the domestic stock market improves, further gains are also expected. Last month, the KOSPI rose 5.82% compared to the previous month.

Kang Dae-seok, a researcher at Yuanta Securities, said, "The KOSPI earnings forecasts, which had been continuously downgraded due to declining confidence, have shown a slight rebound since mid-February, indicating a stabilization of the downward trend. Despite the sharp rebound in the stock index in February, this factor is expected to open the possibility for further gains."

Kiwoom Securities expects the KOSPI to attempt to enter the 2,700 level this week. It is anticipated to be influenced by events such as Federal Reserve Chair Powell's remarks to Congress, U.S. February employment data, China's Two Sessions, Chinese export-import and inflation data, AI developments, and whether there will be rotation among low price-to-book ratio (PBR) stocks.

Han Ji-young, a researcher at Kiwoom Securities, said, "The domestic stock market will pay close attention to price changes in traditional IT stocks such as semiconductors and displays, which contributed to the export surprise in February."

He added, "Chinese events, including the Two Sessions, export-import, and inflation indicators, which can reassess the central government's stimulus intentions, are also scheduled. Trading opportunities are expected to arise in China-related stocks in the domestic market, such as chemicals, steel, cosmetics, and duty-free sectors."