[Good Morning Stock Market] Kospi Expected to Start Higher Riding the Positive Momentum in US Markets

US New York Stock Market's 3 Major Indexes All Close Higher
Led by Gains in Tech Stocks
Samsung Electronics Uncertainty Resolved and Semiconductor Stocks Strong
Positive Impact Expected on Domestic Stock Market as Well

On the 10th, the KOSPI is expected to start higher, buoyed by easing concerns over Middle East instability and positive momentum from the U.S. stock market. However, with liquidity still lacking support, the tug-of-war in supply and demand among semiconductor, secondary battery, and bio sectors, which have large market capitalization weights, is expected to continue.

[Image source=Yonhap News]

All three major indices of the U.S. New York stock market closed higher on the 9th (local time). International oil prices fell for the second consecutive day, easing concerns over Middle East instability, and gains in tech stocks led the rise in stock prices. The blue-chip-focused Dow Jones Industrial Average rose 431.63 points (1.03%) to close at 42,512, the large-cap-focused S&P 500 index gained 40.91 points (0.71%) to finish at 5,792.04, both hitting record highs. The tech-heavy Nasdaq index closed up 108.7 points (0.6%) at 18,291.62.

Seonghoon Lee, a researcher at Kiwoom Securities, explained, "On the 8th and 9th, the U.S. stock market rose as easing Middle East tensions and favorable economic indicators stabilized oil prices and interest rates, with gains led by large tech stocks driving the indices higher."

The domestic stock market is also expected to be positively influenced by the U.S.-driven momentum on the day. However, the sharp decline in the Chinese stock market due to disappointment over stimulus measures is likely to act as a volatility factor for the market.

Jiwon Kim, a researcher at KB Securities, said, "While the two-day rise in the U.S. stock market is expected to have a positive impact on the domestic market, the sharp drop in the Chinese stock market and the options expiration day may increase volatility. There are also concerning factors such as growing expectations of delays in commercialization ahead of Tesla's RoboTaxi unveiling, so a cautious approach to related stocks is necessary."

Researcher Seonghoon Lee forecasted, "On the 10th, the domestic stock market is expected to start higher, led by the semiconductor sector, supported by the resolution of Samsung Electronics' earnings uncertainty and the strength of U.S. semiconductor stocks including Nvidia, which is near its previous high. However, since liquidity conditions in the domestic market remain insufficient, the tug-of-war in supply and demand among semiconductor, secondary battery, and bio sectors with large market capitalization weights is expected to persist."