[Good Morning Market] KOSPI Surpasses 4,100; Momentum Fades...Searching for Direction

The New York stock market closed higher, buoyed by strong performances from technology stocks. On November 3, the KOSPI is expected to search for direction due to short-term overheating, such as breaking through the 4,100-point level, as well as the fading of momentum following the conclusion of the 2025 Asia-Pacific Economic Cooperation (APEC) Summit and the U.S.-China summit.

On the 31st, the KOSPI index rebounded after a decline at the start and is once again challenging to reach a new all-time high. Various indices and exchange rates are displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul. 2025.10.31 Photo by Dongju Yoon

On October 31 (local time), the Dow Jones Industrial Average closed at 47,562.87, up 40.75 points (0.09%) from the previous trading day. The S&P 500 index rose 17.86 points (0.26%) to finish at 6,840.20, while the Nasdaq index jumped 143.81 points (0.61%) to close at 23,724.96.

Strong earnings from Apple and Amazon improved investor sentiment. Amazon announced third-quarter sales of $180.17 billion and adjusted earnings per share (EPS) of $1.95, both exceeding expectations. Apple also beat expectations with third-quarter sales of $124.7 billion and EPS of $1.85.

In Korea, with the conclusion of APEC-the biggest event domestically-there is expected to be a period of momentum vacuum for some time. Heo Jaehwan, a researcher at Eugene Investment & Securities, explained, "With the conclusion of major events such as the U.S.-China summit and the Federal Open Market Committee (FOMC) meeting, a momentum vacuum is expected," adding, "During the 19.9% surge in the KOSPI over the past month, there has been a significant concentration in semiconductors." He continued, "While the upward trend remains valid, we expect a lull phase where the momentum slows down."

Given the rapid rise, there may be a period of consolidation in the near term. Last month, the KOSPI rose by 19.94%, climbing swiftly from the 3,400-point range to the 4,100-point range. Lee Kyungmin, a researcher at Daishin Securities, suggested a November KOSPI band of 3,700 to 4,200, stating, "The KOSPI in November may enter a phase of short-term overheating correction and digestion of supply," and added, "It is necessary to confirm the influx of even stronger investor sentiment and momentum for further gains."

However, the fact that most uncertainties surrounding the domestic market have been resolved is a positive factor. Kim Yonggu, a researcher at Yuanta Securities, explained, "The Korea-U.S. summit on October 29 led to a resolution in tariff negotiations," and "A significant portion of the uncertainties that have weighed heavily on the Korean economy and stock market have been resolved." He added, "The easing of exchange rate volatility is likely to further support the KOSPI's challenge to the 5,000-point level by attracting additional foreign capital inflows into both spot and futures markets."