The KOSPI closed lower as concerns over a delay in interest rate cuts emerged. The release of the Federal Open Market Committee (FOMC) minutes, which hinted at a delay in rate cuts, is interpreted as having dampened investor sentiment.
On the 23rd, as the New York stock market opened lower, the domestic stock market also started down, with both the KOSPI and KOSDAQ opening lower, and the won-dollar exchange rate rising slightly. Stock prices and various indices are displayed in the dealing room at the Hana Bank headquarters in Euljiro, Seoul. Photo by Heo Younghan younghan@
On the day, the KOSPI closed at 2,721.81, down 1.65 points (0.06%) from the previous day. Individuals and institutions sold net amounts of 15.4 billion KRW and 371.1 billion KRW respectively, while foreigners bought a net 356.4 billion KRW.
SK Hynix surpassed 200,000 KRW, buoyed by AI leader Nvidia’s earnings that exceeded market expectations. SK Hynix closed up 1.16% at 200,000 KRW. Samsung Electronics (0.77%) and Kia (1.35%) also rose. Conversely, Hyundai Motor (-1.99%), LG Energy Solution (-0.55%), and Samsung Biologics (-0.90%) declined.
Retail, food and beverage, medical precision, steel and metal, and telecommunications sectors all fell by more than 1%.
Despite Nvidia’s strong earnings, the market contracted following the release of the FOMC minutes suggesting that interest rate cuts may be delayed.
The minutes stated, "Participants were disappointed by the first-quarter inflation figures" and "It appears it will take longer than previously expected to gain greater confidence that inflation is moving steadily toward 2%."
On the same day, AI leader Nvidia reported a surprise earnings beat for the first quarter of the fiscal year (February?April). Nvidia announced after market close on the 22nd (local time) that its first-quarter revenue was $26.04 billion, with adjusted earnings per share (EPS) of $6.12.
Lee Jaewon, a researcher at Shinhan Investment Corp., said, "The KOSPI closed slightly lower as hawkish minutes (FOMC May minutes) reignited concerns over interest rates," adding, "Market interest rates rebounded due to the minutes’ assessment of insufficient price stability and mentions of rate hikes."
The KOSDAQ closed at 846.58, up 0.86 points (0.10%). Individuals sold a net 69.3 billion KRW, while foreigners and institutions bought net amounts of 48.9 billion KRW and 33.3 billion KRW respectively.
HPSP (0.36%) and Classys (0.21%) closed higher. EcoPro BM (-0.74%), EcoPro (-0.41%), Alteogen (-3.33%), and HLB (-1.22%) declined.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
