US Stock Market Rally... KOSPI Attempts to Reclaim 3,200 Level

KOSDAQ Opens Higher Amid Positive Market Sentiment

The KOSPI started higher last week following dovish (favoring monetary easing) remarks by Jerome Powell, Chair of the US Federal Reserve (Fed).

As of 9:25 AM on August 25, the KOSPI stood at 3,187.20, up 18.38 points (0.58%) from the previous trading day. The index opened at 3,195.14, up 26.41 points (0.83%) from the previous session.

On the 25th, employees are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, as of 9:02 AM, the KOSPI showed an increase of 26.39 points (0.83%) compared to the previous trading day, reaching 3195.12. Photo by Yonhap News

In early trading, among the top 10 stocks by market capitalization, SK Hynix (up 1.29%), LG Energy Solution (up 1.36%), Samsung Biologics (up 0.58%), Hanwha Aerospace (up 0.45%), HD Hyundai Heavy Industries (up 1.35%), and KB Financial Group (up 1.38%) were rising. In contrast, Samsung Electronics (down 0.35%), Samsung Electronics Preferred (down 0.17%), Hyundai Motor (down 0.23%), and Kia (down 0.29%) were declining.

Previously, on August 22 local time, Chair Powell stated in his keynote speech at the Jackson Hole meeting, "Downside risks in the labor market are increasing," and added, "In a situation where policy remains in restrictive territory, changes in the baseline outlook and risk balance could justify an adjustment in policy stance."

The market interpreted this as a signal for a potential base rate cut. As a result, all three major US stock indices-the Dow Jones, Standard & Poor's (S&P) 500, and Nasdaq-rose sharply on the same day.

Attention is also focused on whether the KOSPI will regain the 3,200 level, with a South Korea-US summit meeting scheduled.

On this day, President Lee Jaemyung, who arrived in Washington, DC, is scheduled to hold his first South Korea-US summit with US President Donald Trump on August 25 (local time). The meeting is expected to cover additional negotiations on the tariff agreement reached at the end of last month, as well as discussions on expanding cooperation between South Korea and the US in shipbuilding and nuclear energy.

At the same time, the KOSDAQ index was trading at 795.55, up 13.04 points (1.67%) from the previous session. The index opened at 791.66, up 9.15 points (1.17%) from the previous session, and has been gradually increasing its gains.

Among the top 10 KOSDAQ stocks by market capitalization, Rainbow Robotics (up 6.27%), ABL Bio (up 5.26%), Legochem Bio (up 4.53%), Samchundang Pharm (up 3.08%), Alteogen (up 2.73%), HLB (up 2.67%), Ecopro (up 1.68%), and Ecopro BM (up 1.01%) were on the rise. Pharmaresearch (down 1.43%) and Peptron (down 1.11%) were declining.

Han Ji-young, a researcher at Kiwoom Securities, said, "In Korea, not only the Bank of Korea's Monetary Policy Board meeting on whether to further cut the base rate, but also the South Korea-US summit on August 25 are emerging as unique variables. The details of mutual tariff negotiations, such as the $35 billion investment in the US and the reduction of automobile tariffs, whether tariffs on individual items such as semiconductors and pharmaceuticals will be on the agenda, and discussions related to the controversy over unfair nuclear power plant contracts, could all influence the short-term direction of leading domestic stocks."