[Good Morning Stock Market] Yen Weakness, Increased Currency Volatility... "Caution on Foreign Demand in KOSPI"

Mirae Asset Securities analyzed on the 28th that amid the dollar's strength due to the yen's weakness, currency volatility is increasing in major Asian countries, and it is necessary to pay attention to changes in foreign investors' supply and demand.

On the 28th, it was analyzed that the Korean stock market should pay attention to foreign investor supply and demand trends. While the U.S. stock market showed an overall upward trend, currency volatility among major Asian countries is increasing amid a strong dollar driven by a weak yen.

On the 27th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 39,760.08, up 477.75 points (1.22%) from the previous trading day. The S&P 500 index closed at 5,248.49, up 44.91 points (0.86%), marking an all-time high. The Nasdaq index ended the day at 16,399.52, rising 83.82 points (0.51%).

New York Stock Exchange

The U.S. stock market showed sectoral differentiation due to quarter-end rebalancing effects. Ahead of the Good Friday holiday on the 29th and February's Personal Consumption Expenditures (PCE) data, changes in supply and demand related to quarter-end rebalancing are presumed to be underway. Stocks that led the concentration trend since the beginning of the year showed relative weakness, while bargain buying demand flowed into previously neglected sectors.

NVIDIA, which had led the upward trend, experienced a correction phase for two consecutive trading days. Meanwhile, Broadcom and TSMC also showed weakness. However, Intel and Qualcomm, which announced plans to form the UXL consortium to respond to the NVIDIA ecosystem, showed relative strength. Bargain buying demand flowed into stocks showing differentiated patterns, increasing the overall index gains. Considering this, optimistic investor sentiment is interpreted as still valid.

On the 15th, the USD-KRW exchange rate was displayed on the electronic board in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

It is necessary to pay attention to whether similar supply and demand changes appear in the domestic stock market on the 28th. In particular, the exchange rate is a variable. The dollar remains strong. Despite the Bank of Japan (BOJ), Japan's central bank, hinting at verbal intervention due to the weak yen, the yen's weakness has not been resolved, supporting the strong dollar. The relatively highlighted possibility of early interest rate cuts in Europe also seems to influence upward pressure on the dollar.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "Volatility in major Asian currencies is increasing amid the strong dollar driven by the weak yen," adding, "In particular, the won's weakness is relatively strong, so attention should be paid to foreign investor supply and demand trends."