[Good Morning Stock Market] Will Stock Prices Recover from the Aftershocks of Tariff Shocks?

"Short-term Recovery Attempt at the 2600 Level Expected"
Focus on Bank of Korea MPC and Major Corporate Earnings Announcements

On the 14th, the domestic stock market is expected to continue a volatile trend as it digests the aftershocks of the US tariff shock.

Earlier, the New York stock market successfully rebounded across the board (Dow Jones Industrial Average 1.56%, S&P 500 Index 1.81%, Nasdaq Index 2.06%) despite high volatility last week, driven by optimism over the US-China trade negotiations and the Federal Reserve's market intervention.

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Ji-won Kim, a researcher at KB Securities, said, "There is hope for a positive start as the US government excluded some items such as smartphones and computers from mutual tariff impositions," but added, "However, volatility is expected to continue this week due to ongoing tariff aftershocks. Attention should also be paid to the Bank of Korea's Monetary Policy Committee decision on the 17th."

There is also an assessment that the prospect of the tariff risk triggered by President Donald Trump entering a peak-out (decline after reaching the peak) phase will act as a positive factor for the domestic stock market. Ji-young Han and Seong-hoon Lee, researchers at Kiwoom Securities, said, "The Korean stock market is expected to recover influenced by US-China real economy indicators, remarks by Jerome Powell, Chairman of the US Fed, the Bank of Korea's Monetary Policy Committee, and earnings events of major companies (Goldman Sachs, Netflix, TSMC, ASML), amid expectations of tariff anxiety peaking out and concerns over noise resurgence."

Kyung-min Lee, a researcher at Daishin Securities, analyzed, "The KOSPI will attempt to recover the 2600 level in the short term, and from a valuation normalization perspective, it is possible to attempt to break through the 2700 level during the second quarter," adding, "Specifically, sectors such as semiconductors, automobiles, secondary batteries, internet, and pharmaceuticals/biotech are currently at price/index levels where a strategy to increase weighting by utilizing short-term fluctuations is effective."

On the 16th, major companies including the US March retail sales and the Dutch company ASML will begin announcing earnings. On the 17th, the Bank of Korea's Monetary Policy Committee meeting is scheduled, with expectations weighted toward keeping the base interest rate unchanged at the current 2.75%. The European Central Bank (ECB) will also decide its base interest rate, and Taiwan's TSMC will release its earnings on the same day.