South Korea's stock market opened higher on the 16th, buoyed by a rebound in the U.S. stock market that alleviated inflation concerns.
The KOSPI index reached 2,530.54 at 9:05 a.m. on this day, up 33.73 points (1.35%) from the previous day. At the same time, the KOSDAQ index recorded an increase of 9.32 points (1.31%) to 720.93.
Among the top stocks in the KOSPI market by market capitalization, SK hynix is showing significant gains. Stocks of Samsung Electronics, LG Energy Solution, Samsung Biologics, and Hyundai Motor are also trading at higher prices than the previous day.
In the KOSDAQ market, most of the top stocks by market capitalization, including Alteogen, ECOPRO BM, HLB, Ecopro, Rainbow Robotics, and LigaChem Biosciences, are performing strongly.
Overnight, the three major stock indices in the U.S. stock market rose across the board. The Dow Jones Industrial Average increased by 1.65%. The large-cap focused Standard & Poor's 500 Index and the technology-focused Nasdaq Composite Index also rose by 1.83% and 2.45%, respectively.
This is due to price indicators coming in softer than expected. The U.S. Consumer Price Index (CPI) for December rose 2.9% year-on-year, aligning with forecasts. The year-over-year increase in the Core CPI, excluding volatile food and energy prices, was 3.2%, falling short of both the forecast (3.3%) and the November (3.3%) increase. Following the CPI announcement, the yield on the 10-year U.S. government bonds, which serves as a benchmark for global bond rates, fell to around 4.6%.
There were also many other favorable factors. With the earnings announcement period underway, the performance of investment banks was strong. Geopolitical tensions eased following a truce between Israel and the Palestinian armed group Hamas and an agreement on the exchange of hostages and prisoners.
However, Sang-hyun Park, a researcher at iM Securities, noted that while the CPI provided relief to the market, vigilance should still be maintained, especially with Donald Trump's inauguration as president coming on the 20th.
Research Institute Park said, "There are potential price risks associated with the 'super Trumpism,' which will intensify following President Trump's inauguration. If policy announcements are more accommodating than expected, the honeymoon effect could grow."