The KOSPI index topped the 3,700 mark for the first time ever as regular trading opened on the 16th. It appears to be thanks to news that the follow-up trade talks between Korea and the United States, which had been cited as a source of instability for the domestic stock market, have entered the final stage.
At 9:05 a.m. that day, the KOSPI index stood at 3,696.09, up 1.06% (38.81 points) from the previous day. At the same time, the KOSDAQ index was at 867.48, up 0.32% (2.76 points).
The KOSPI index set a new all-time high the previous day by rising to 3,659.91 intraday, and then surpassed it by climbing to 3,700.28 at 9:11 a.m. that day.
Among the top market-cap stocks on the KOSPI market, Samsung Electronics, Doosan Enerbility, and Hyundai Motor are on the rise from the previous day. SK hynix and Samsung Biologics started weaker.
On the KOSDAQ market, shares such as Alteogen, ECOPRO BM, Rainbow Robotics, and PharmaResearch are trading at higher prices than the previous day. Peptron and LigaChem Biosciences are trading below the previous day's close.
U.S. Treasury Secretary Scott Bessent said in an interview with CNBC on the 15th (local time) that the follow-up trade talks with Korea have "entered the final stage." Koo Yun-cheol, Deputy Prime Minister for the economy and Minister of Economy and Finance, also said regarding the trade talks with the United States that they are "continuing to coordinate with each other at a rapid pace."
Korea and the United States, through trade talks on Jul. 30, reached an agreement under which the United States would lower the tariff on Korea it had signaled from 25% to 15%, and Korea would create a $350 billion investment fund for the United States. However, they have held follow-up trade talks over the share of direct investment within the $350 billion.
However, U.S. President Donald Trump again said during a late-night news conference at the White House that "Korea agreed to pay $350 billion upfront," so it remains to be seen whether a final agreement will be reached. The Korean government has maintained the stance that it is difficult to pay the U.S.-bound investment funds upfront in light of the risk of large-scale foreign currency outflows.
Caution over an artificial intelligence (AI) bubble also persists. According to a survey by Bank of America (BofA) of fund managers worldwide, the share of respondents who said there is "a bubble in AI stocks" rose to 54% in October from 41% in September. As a market risk factor, "a resurgence of inflation" ranked first in September, but in October "the AI bubble" took that spot.
Han Ji-young, a Kiwoom Securities researcher, said, "Although opinions differ regarding the AI bubble, ultimately, as the earnings of the AI stocks singled out have become crucial, the big tech earnings releases starting next week will determine the course of stock markets worldwide."