On the 19th, the KOSPI index started lower following news that the global credit rating agency Moody's downgraded the United States' sovereign credit rating.
As of 9:07 a.m. on that day, the KOSPI index recorded a decline of 11.10 points (0.42%) to 2,615.77 compared to the previous day. The KOSPI index opened at 2,613.70, down 0.50% on the day.
In the stock market, foreign investors and institutions are net selling 24.8 billion won and 11.4 billion won, respectively. Only individuals are buying 41.5 billion won worth.
Among the top market capitalization stocks, Samsung Electronics, SK hynix, Hyundai Motor, and Samsung Electronics preferred shares are down by around 1%. Kia is down 0.98%, and Hanwha Aerospace is down 0.12%. Conversely, Samsung Biologics (1.20%), LG Energy Solution (1.03%), KB Financial (0.96%), and HD Hyundai Heavy Industries (0.12%) are all on the rise.
At the same time, the KOSDAQ index is trading at 719.82, down 5.25 points (0.72%) from the previous day. The KOSDAQ index started trading at 721.27, down 0.52% on the day. In the KOSDAQ market, institutions and foreign investors are selling net 54.3 billion won and 27.2 billion won, respectively, while individuals are net buying 41.5 billion won.
Most of the top market capitalization stocks on the KOSDAQ are down. HLB is down more than 3%, while Rainbow Robotics, LigaChem Biosciences, and Sam Chun Dang Pharm are down by around 2%. On the other hand, Peptron and CLASSYS are up 2.63% and 0.33%, respectively.
On that day, in the Seoul foreign exchange market, the exchange rate of the won against the U.S. dollar (won-dollar exchange rate) started trading at 1,395.1 won, up 5.5 won from the previous day.
Last Friday, the U.S. stock market displayed strength as optimism stemming from the U.S.-China trade negotiations impacted the market. On the 16th (local time), the Dow Jones Industrial Average closed up 0.78% at 42,654.74. The Standard and Poor's 500 index rose 0.70% to close at 5,958.38, while the Nasdaq index closed up 0.52% at 19,211.10.
The sharp downturn sparked by the U.S. imposing massive tariffs on China and China's retaliation transformed into a market surge after both sides agreed to suspend tariffs. The U.S. consumer sentiment index for May fell, and short-term expected inflation showed an increase, yet investors seemed largely unconcerned.
According to the University of Michigan, the preliminary consumer sentiment index for May was recorded at 50.8, a drop of 1.4 points from the confirmed figure of 52.2 in April, falling short of the market expectation of 53.4. The one-year expected inflation jumped from 6.5% in April to 7.3%, marking the highest level since 1981.