As the likelihood of a U.S. benchmark rate hold has increased, the KOSPI index is in transaction around the 6,600 level on the 4th. All buyer groups except individuals are net buyers, lifting the index.
As of 11:25 a.m., the KOSPI index is in transaction at 6,662.49, up 83.01 (1.26%) from the previous session. After opening higher, the index is in transaction around the 6,600 level intraday. The gap between the high and low is 50 points, showing a small trading range.
Foreigners and institutions are net buying 230.5 billion won and 658.5 billion won, respectively. Looking more closely at institutions, financial investment, where exchange-traded fund (ETF) money is counted, is a net buy of 518.8 billion won, and the national pension funds are a net buy of 104.1 billion won. Other corporations, presumed to be share buybacks by Samsung Electronics and SK hynix, are net buying 620.1 billion won.
Individuals alone are net selling 1.5041 trillion won.
Overnight, dovish (favoring currency easing) remarks by senior Federal Reserve officials helped ease some concerns about high interest rates that had weighed on stocks.
Christopher Waller, a Fed governor, noted he would be willing to support holding the benchmark rate if upcoming price indicators confirm easing inflation pressures. The previous day, John Williams, president of the New York Federal Reserve Bank, said the recent surge in U.S. Government Bonds yields was not due to market dysfunction but a result of a strong economy, adding it is necessary to watch price trends carefully.
At the Chicago Mercantile Exchange (CME) FedWatch, the probability of a rate hold by the Fed in September rose to 49.5% from 36.8% the previous day.
Economic indicators are mixed. The U.S. 10-year Government Bonds yield fell slightly to 4.76%, but international oil prices are still in transaction around $90.
Technology stocks such as Samsung Electronics and SK hynix are strong. Financials, which had been strong on high-rate benefits, are weak. Refiners such as 에쓰오일 are still surging on the jump in oil prices.
At the same time, the KOSDAQ index is in transaction at 807.8, up 17.59 (2.23%) from the previous session. Foreigners and institutions are net buying 137.8 billion won and 56.3 billion won, respectively. Individuals alone are net selling 181.1 billion won.
In the KOSDAQ market, both biotech stocks led by Alteogen and semiconductor stocks led by Wonik IPS are strong.