On the 8th, the KOSPI index is showing limited gains ahead of the U.S. price index announcement and a potential interest rate cut.
The KOSPI index recorded 3210.15 at 9:06 a.m. on the day, up 5.03 points (0.16%) from the previous transaction day. At the same time, the KOSDAQ index showed an increase of 4.45 points (0.55%) to 815.85.
Among the top market capitalization stocks in the KOSPI market, Samsung Electronics and SK hynix are up more than 1%. Samsung Biologics, Hanwha Aerospace, and Celltrion are also trading at higher prices than the previous day. In contrast, LG Energy Solution, HD Hyundai Heavy Industries, Hyundai Motor Company, and KB Financial are seeing a decline in their stock prices.
In the KOSDAQ market, Alteogen, Ecopro, PharmaResearch, and HLB are experiencing strong stock prices. In contrast, Peptron and Ecopro are continuing their downward trend in early trading.
Overnight, the U.S. New York stock market showed weakness. The Dow Jones Industrial Average fell by 0.48%, the S&P 500 index by 0.32%, and the tech-focused NASDAQ index by 0.03%.
With the U.S. labor market showing significant deterioration in August, the possibility of the U.S. Federal Reserve (Fed) cutting interest rates this month has increased. According to the U.S. Department of Labor, new non-farm employment in August was 22,000, significantly below the Dow Jones forecast of 75,000. The unemployment rate rose to 4.3%, marking the highest level since 2021.
Amid expectations of interest rate cuts, the three major U.S. stock indexes hit all-time highs at the market open, but turned to declines as concerns over economic recession due to the worsened employment figures became more pronounced.
Lee Kyung-soo, a researcher at Hanwha Securities, noted, "Tensions between expectations for a liquidity-driven market due to the U.S. employment shock and recession fears are prevalent," adding, "Historically, such volatility in U.S. market interest rates has led to stock price declines due to recession concerns rather than a liquidity-driven market."
The volatility of the domestic stock market is expected to increase depending on the U.S. price index announced on the 10th and 11th. On the 10th, the August U.S. Producer Price Index (PPI) will be announced, and on the 11th, the Consumer Price Index (CPI) will be released. If the price index rises, inflation concerns may intensify.
Han Ji-young, a researcher at Kiwoom Securities, predicted, "The domestic market is likely to continue a directionless trend due to the U.S. employment results and price indexes, major artificial intelligence (AI) software companies' earnings, and simultaneous expiration of futures and options," and suggested a weekly KOSPI range of 3140 to 3260.
On this day, the exchange rate for the won against the U.S. dollar in the Seoul foreign exchange market is 1.4 won lower than the previous transaction day, at 1389.60 won.