[Good Morning Market] New York Rises on Tech Rebound... KOSPI Expected to Open Higher

On December 3, the KOSPI is expected to open higher, buoyed by the rebound in the New York stock market. However, due to the sharp gains in the previous session, a rotation among individual stocks is anticipated, leading to a differentiated market trend.

AP Yonhap News

On December 2 (local time) in the New York stock market, the Dow Jones Industrial Average, which is focused on blue-chip stocks, closed at 47,474.46, up 185.13 points (0.39%) from the previous session. The S&P 500 Index, which is centered on large-cap stocks, rose by 16.74 points (0.25%) to 6,829.37, while the tech-heavy Nasdaq Index climbed 137.75 points (0.59%) to finish at 23,413.67.

No major market-moving factors emerged. However, as Bitcoin rebounded, risk appetite returned to the New York stock market. In addition, artificial intelligence (AI) and semiconductor-related themes showed strong performances. The Philadelphia Semiconductor Index rose by 1.84%.

Han Ji-young, a researcher at Kiwoom Securities, explained, "The U.S. stock market rose on the back of eased concerns over yen-carry trade unwinding due to stable Japanese interest rates, expectations for a dovish policy from the next Federal Reserve Chair, and remarks from Nvidia's Chief Financial Officer dismissing the idea of an AI bubble."

The KOSPI is also expected to open higher, supported by the rebound in the U.S. stock market. Han added, "The market is likely to be influenced by U.S.-driven factors such as expectations for the next Federal Reserve Chair and the strength in the Philadelphia Semiconductor Index, resulting in a higher opening." She also predicted, "During the session, a rotation focused on profit-taking in large-cap stocks that surged the previous day will likely lead to sector differentiation."

Additionally, the stabilization of net selling by foreign investors is seen as a positive factor. Last month, foreign investors recorded net selling for four consecutive weeks. Han noted, "Foreign investors had been the main force exerting downward pressure on the market, but the fact that they switched to net buying of 1.4 trillion won over two trading days in December indicates that the 'Sell Korea' trend is easing, which is a source of relief."