As the U.S. stock market fell for a third straight day after rate-cut expectations cooled on stronger-than-expected economic data, the KOSPI and KOSDAQ were also weak early on the 26th.
At 9:04 a.m. that day, the KOSPI stood at 3,433.28, down 37.83 points (1.09%) from the previous day. At the same time, the KOSDAQ was 845.57, down 6.91 points (0.81%).
In the KOSPI market, foreigners and institutions were net sellers of 145.4 billion won and 52.5 billion won, respectively. Only individuals were net buyers, at 198.1 billion won. In the KOSDAQ market as well, foreigners and institutions moved to "sell," at 30.0 billion won and 7.9 billion won, respectively. Individuals were net buyers of 37.9 billion won.
Among the top KOSPI market-cap stocks, Samsung Electronics, SK hynix, LG Energy Solution, and Samsung Biologics opened lower. Hanwha Aerospace shares traded at a higher price than the previous day.
Among the top KOSDAQ market-cap stocks, the "bellwether" Alteogen and Rainbow Robotics were flat, while ECOPRO BM, Ecopro, Peptron, and PharmaResearch were weak.
Overnight on Wall Street, the Dow Jones Industrial Average, the Standard & Poor's (S&P) 500, and the Nasdaq all fell for a third straight session.
The final reading of the U.S. gross domestic product (GDP) growth rate for the second quarter (April–June) was revised higher than the previous estimate, and new jobless claims fell to their lowest level since mid-Jul., keeping the strong economic momentum going. That in turn weighed on the market as expectations for a rate cut by the U.S. Central Bank, the Federal Reserve (Fed), diminished.
Whether the U.S. August personal consumption expenditures (PCE) due out that night meets the market consensus (up 2.7% on-year) is expected to be key. PCE is a core inflation gauge the Federal Reserve considers when setting monetary policy.
With a long Chuseok holiday ahead, there are also forecasts that the domestic market could remain sluggish. Han Ji-young, a Kiwoom Securities researcher, said, "The long holiday and end-September domestic and overseas institutional quarterly rebalancing (asset readjustments) could increase supply-demand volatility," adding, "Not only today but for the rest of the month, the index may be rangebound, with sector rotation likely to continue."