On the 2nd, the KOSPI opened higher. As projections emerged that the war with Iran will come to an end, investment sentiment toward risk assets recovered. However, with the index having surged more than 8% the previous day, aggressive buying has not appeared.
That day, the KOSPI started trading at 5,551.69, up 72.99 points (1.33%) from the previous session. As early gains slowed, the index was up around 1% near the 5,500 level.
Individuals and the National Pension Service are net buyers, but foreigners are net sellers. Still, foreign selling is not strong. In KOSPI200 futures, foreigners are net buyers.
Overnight, U.S. stocks rose across the board. With both the United States and Iran, which are at war, clearly hinting at the possibility of a cease-fire, funds flowed into equities.
The previous day, U.S. President Donald Trump said in an interview with Reuters that the timing of U.S. troop withdrawal from Iran "could be fairly quick." Although he also said he would "carry out precision strikes on Iran if necessary," the remarks were interpreted as a warning against escalation and a focus on striking Iranian nuclear facilities.
Iranian President Masoud Pezeshkian also showed a will to end the war, saying in a letter released to local media that "continuing down the path of confrontation demands a greater price than ever and is meaningless."
Concerns about the war remain, but investor sentiment has visibly recovered. U.S. stocks rose for a second straight day, with tech names such as Micron, Tesla, and Alphabet jumping sharply. U.S. economic indicators released overnight, including jobs data, were also solid.
However, the won-dollar exchange rate, which had calmed, is spiking again. The won-dollar rate opened weekly trading that day at 1,512.2 won, up 10.9 won.
Defense stocks are strong on the Korea Exchange that day. Hanwha Aerospace is up nearly 8%, and Hyundai Rotem is also strong. HD Hyundai Heavy Industries, which plunged the previous day on news of an exchangeable bond issuance, is rising.
The KOSDAQ is also strong. The KOSDAQ started trading that day at 1,130 points, up 1.25% from the previous day, but as gains narrowed somewhat, it was rising near 1,125 points in early trading.