[Good Morning Market] Easing US-China Trade Tensions... KOSPI Expected to Open Higher

On April 24, the KOSPI is expected to open higher, driven by the easing of trade tensions between the United States and China.

On the previous day in the New York stock market, the Dow Jones Industrial Average closed at 39,606.57, up 419.59 points (1.07%) from the previous session. The S&P 500 Index ended at 5,375.86, up 88.10 points (1.67%), and the tech-heavy Nasdaq Composite finished at 16,708.05, up 407.63 points (2.50%).

The rally in the New York stock market was attributed to expectations of reduced U.S. tariffs on Chinese goods and remarks by U.S. President Donald Trump stating that he would not dismiss Jerome Powell, the Federal Reserve Chair. According to foreign media reports, the White House is currently considering lowering the tariff rate on Chinese goods (from 145% to 50-60%) and applying differentiated tariffs of 35% and over 100% on certain items, depending on national security threats.

Additionally, Trump's comment that he has "no intention of dismissing Chair Powell" helped ease concerns over the Fed's independence, which had recently contributed to increased volatility in financial markets. Amid a recent triple decline in U.S. stocks, Treasury prices, and the value of the dollar, support for Trump's economic policies has sharply dropped. In the short term, it is analyzed that Trump's tariff policy appears to be entering a phase of moderation.

On the previous day, the domestic stock market closed higher, led by gains in sectors such as semiconductors and automobiles, which had been affected by tariffs. This was due to the easing of concerns over the Fed's independence and growing expectations of a resolution to the U.S.-China tariff war.

Today, the domestic stock market is also expected to open higher, in line with the rebound in the New York stock market stemming from expectations of easing U.S.-China trade tensions. Since April, when the issue of reciprocal tariffs first surfaced, the domestic stock market has rebounded the fastest among major countries and is currently the only one to have recovered a positive return.

Lee Sunghoon, a researcher at Kiwoom Securities, stated, "The domestic stock market still possesses valuation appeal, and the relative outperformance compared to the U.S. market may continue, fueled by expectations surrounding the early presidential election phase."

Lee also noted, "Today, major companies such as SK Hynix and Hyundai Motor will be announcing their earnings, so the trend of stock-specific differentiation based on earnings is expected to continue. In addition, the Korea-U.S. tariff negotiations are scheduled to begin at 9:00 p.m. this evening. Although these negotiations are likely to remain at an exploratory stage, considering they are taking place before the presidential election, the domestic stock market is expected to partially reflect expectations regarding the negotiations."