On May 2, the domestic stock markets closed higher across the board. Ahead of the upcoming extended holiday, a wait-and-see sentiment prevailed in the market, while news of progress in the US-China tariff negotiations and strong earnings reports from major companies boosted investor sentiment.
On this day, the KOSPI finished trading at 2,559.79, up 3.18 points (0.12%) from the previous session. The index had opened slightly lower at 2,556.52, down 0.09 points, but turned upward during the session, although the gains remained limited. While individuals and foreign investors net sold 214.3 billion won and 166.9 billion won worth of shares respectively, institutions alone buoyed the market by net buying 302.5 billion won.
Among large-cap stocks, performance was somewhat mixed. SK hynix, which ranked first in net purchases by foreign investors, jumped 4.79%. KB Financial Group rose 3.33%, Samsung Biologics 3.14%, Hanwha Aerospace 2.63%, HD Hyundai Heavy Industries 1.62%, Celltrion 0.68%, and Hanwha Ocean 0.51%. In contrast, Hyundai Mobis fell 4.11%, Samsung Electronics 2.16%, NAVER 1.55%, LG Energy Solution 1.23%, Kia 1.11%, Hyundai Motor 0.63%, and Shinhan Financial Group 0.39%.
On the same day, the KOSDAQ ended at 721.86, up 4.62 points (0.64%) from the previous session. The index had started at 716.60, down 0.64 points (0.09%), but soon rebounded and extended its gains. While individuals net sold 146.6 billion won, foreign investors and institutions bought 79.8 billion won and 65.9 billion won worth of shares, respectively.
Most large-cap stocks on the KOSDAQ posted gains. Peptron rose 4.29%, ABL Bio 3.99%, PharmaResearch 3.45%, Legochem Bio 3.05%, EcoPro BM 2.96%, SM 2.91%, Hugel 1.78%, Alteogen 1.57%, Samchundang Pharm 0.92%, HLB 0.88%, Rainbow Robotics 0.74%, and Classys 0.62%. In contrast, EcoPro declined 1.57% and Kolon TissueGene dropped 4.20%.
Kim Jiwon, a researcher at KB Securities, commented, "Both markets rose together as investors digested earnings results and news of progress in the US-China tariff negotiations improved sentiment." She added, "Although the domestic market opened weak after the holiday, reflecting several issues at once such as the US's first-quarter GDP contraction, weak manufacturing PMI, employment, and earnings, the news of progress in US-China negotiations served as a driving force for the market's rally."
Later tonight, the US April employment report is scheduled for release. Kim noted, "Given that the Federal Reserve continues to be data-dependent, the interpretation of employment data is an important variable, so the results are drawing attention." With the domestic market closed on May 5-6, service sector indicators from both the US and China will be released. On May 7-8, key rate-setting events such as the Federal Open Market Committee (FOMC) are lined up, which will determine the direction of the markets.
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