Last night, the major indices of the New York Stock Exchange closed at all-time highs, and the domestic stock market also started strong. There are expectations that concerns over U.S. prices due to tariffs will have a somewhat limited impact on the domestic economy.
As of 9:02 a.m. on this day, the KOSPI index showed an increase of 31.78 points (1%) to 3221.69 compared to the previous trading day. Individuals have made a net purchase of 567 million won, while institutions and foreigners are selling a net 373 million won and 230 million won, respectively.
The top 10 stocks by market capitalization on the securities market are generally showing strength. HD Hyundai rose by 3.29%, marking the largest increase. Samsung Electronics, SK hynix, Samsung Biologics, Samsung Electronics preferred shares, Hyundai Motor, KB Financial, and Doosan Enerbility are also gaining together. Hanwha Aerospace is showing a slight decline of about 1%, while LG Energy Solution is stable.
The KOSDAQ index also showed an increase of 6.53 points (0.81%) to 813.72 compared to the previous trading day. By investor type, individuals have made a net purchase of 342 million won, while foreigners and institutions are selling a net 277 million won and 48 million won, respectively.
The top 10 stocks by market capitalization in the KOSDAQ market are also strong. PharmaResearch is showing the largest increase, rising by 2.39%. Alteogen, ECOPRO BM, Ecopro, LigaChem Biosciences, HLB, Rainbow Robotics, Sam Chun Dang Pharm, and ABL Bio are also gaining together. Peptron started off weak.
The New York Stock Exchange hit all-time highs on the 12th, spurred by expectations that the Federal Reserve will cut the benchmark interest rate. The Dow Jones Industrial Average closed up 483.52 points (1.1%) at 44,458.61. The Standard & Poor's (S&P) 500 Index finished up 72.31 points (1.13%) at 6,445.76, and the Nasdaq Composite Index closed up 296.50 points (1.39%) at 21,681.90. Both the S&P 500 and the Nasdaq Composite Index recorded all-time highs based on closing prices.
Expectations for a rate cut have increased following the release of the July consumer price index. The U.S. Department of Labor announced that the consumer price index (CPI) for July rose by 2.7% compared to the same month last year. Despite tariff risks, the price impact does not appear to be significant, leading to forecasts that the Fed will decide to cut the benchmark interest rate in its September monetary policy meeting.
Huh Geon-hyeong, a researcher at Shinhan Investment Corp., said, "Starting in August, the re-commencement of tariff-based price increases is expected to widen the price increase range. However, he noted that it is not at a level that would undermine expectations for price stability, so considering signs of a slowdown in employment (demand), the Fed is likely to respond with rate cuts starting in September."