On the first trading day of December, the domestic stock market opened higher on expectations of increased year-end consumption, but the KOSPI and KOSDAQ are showing divergent moves. The KOSPI erased all of its early gains shortly after the open, while the KOSDAQ is holding a rise of more than 1% on hopes for government policy.

On the 1st, the KOSPI opened at 3,967.92, up 41.33 points (1.05%) from the previous trading day. Net buying by foreigners led the index higher. But the early gains narrowed sharply. As of 9:30 a.m., the KOSPI has turned lower and is moving in the 3,910–3,920 range.

On the 1st, a digital board in the dealing room at Hana Bank in Jung-gu, Seoul displays KOSPI and KOSDAQ market conditions./Courtesy of News1

By contrast, the KOSDAQ is maintaining gains of 1.2%–1.3%, moving above the 920 level. Expectations that the KOSDAQ, long undervalued, will extend a rally if the financial authorities announce measures to revitalize the market are gaining traction.

U.S. stocks in New York rose across the board over the weekend. Markets closed early at 1 p.m. for Thanksgiving, but expectations that spending would increase during Black Friday, the biggest U.S. shopping period, boosted investor sentiment. Shares of major retailers such as Walmart and Amazon were strong.

Buoyed by this, the domestic market also opened higher. The KOSPI briefly reclaimed the 3,970 level early in the session. But the gains soon narrowed, and the index turned lower with losses deepening. Foreign buying is not strong, and institutions and individuals are net sellers. In particular, foreigners are net sellers of KOSPI200 futures.

Some noted that although the market has entered the biggest shopping season of the year, the Black Friday effect is weaker than in past years. Because of the Donald Trump administration's tough tariff policy, corporations have limited room to cut product prices, and consumer sentiment is subdued amid job insecurity.

While the KOSPI climbed, the KOSDAQ, which had failed to rise alongside it, is strong on expectations of policy benefits. Han In-hwan, a KB Securities researcher, said, "Typically, the KOSDAQ has posted higher gains at the start of the year (first quarter), and with the government emphasizing the nurturing of venture capital that invests in small and midsize companies, we are focusing on the KOSDAQ as a new market leader."

On hopes for KOSDAQ market revitalization, Mirae Asset Venture Investment shares hit their highest in three years.

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