On the 5th, the KOSPI index opened lower. With investors remaining on the sidelines ahead of next week's U.S. Federal Reserve (Fed) policy rate decision, the market appears to be catching its breath.
With U.S. employment data released the previous day showing mixed signals, the New York stock market also ended mixed. Still, the market sees a high likelihood of rate cuts.
As of 9:35 a.m. that day, the KOSPI index was trading around the 4,030 level, up about 0.2% from the previous day. The KOSPI index started transaction at 4,023.50, down 5.01 points (0.12%) from the previous session. Foreign investors initially showed selling dominance, seemingly widening early losses, but as they turned to net buying, the index rebounded. Institutions are also net buyers.
Top market-cap stocks are mixed. Hyundai Motor is strong, while Samsung Electronics and LG Energy Solution are rising. In contrast, SK hynix and SK Square are falling by a relatively large margin.
U.S. employment indicators released the previous day were somewhat mixed. The November corporate layoff plans (CG&C) were 71,000, a 24% surge from a year earlier, marking a record high in about three years. In contrast, the U.S. Labor Department said initial jobless claims for the week ended on Nov. 29 totaled 191,000. That is the lowest since September 2022 and roughly 30,000 below market expectations.
Experts said the U.S. employment situation remains solid. As a result, a series of views emerged that the Fed's chances of additional rate cuts could diminish. If employment is healthy, the Fed has less justification to pursue further accommodative monetary policy.
However, some experts noted that the figures may have been distorted by seasonal adjustment effects during Thanksgiving week. Because of this, the view that additional rate cuts are still likely remains dominant. Citigroup said in an investment note released that day, "There is no need to overinterpret this week's decline in weekly jobless claims," and argued, "We expect them to rise again within the next few weeks."
At the same time, the KOSDAQ index is extending losses and falling nearly 1%. The index slipped to the 920 level. The KOSDAQ index opened higher but turned lower immediately after the session began.
Alteogen fell 3.66% from the previous session. Rainbow Robotics and LigaChem Biosciences are down in the 1% range. In contrast, EcoPro BM, EcoPro and ABL Bio are being transacted at prices up 2%.
In the Seoul foreign exchange market, the won-dollar exchange rate was being transacted at 1,474 won as of the same time, down 1 won from the previous session.