Korea Stocks Eye 6,600 Hold as Fed, Magnificent Seven Earnings Loom

U.S. stocks edged lower on April 28 ahead of the Federal Reserve’s Federal Open Market Committee meeting and first-quarter earnings from megacap technology companies. The question for South Korea’s market on April 29 is whether it can extend its recent gains or take a breather.

The Kospi closed 0.39% higher at 6,641.02 in the previous session, while the Kosdaq fell 0.86% to 1,215.58. The United Arab Emirates, a major Middle Eastern oil producer, is set to leave both OPEC and OPEC+ on May 1. The main reason cited was disruption to the country’s oil exports caused by Iran’s blockade of the Strait of Hormuz.

Hyundai Motor Group shares rallied after the company unveiled the design of the new Grandeur. Hyundai Motor rose 5.92% to 555,000 won. Hyundai AutoEver gained 8.39%, Hyundai Rotem advanced 5.84% and Hyundai Mobis added 3.35%. Steel shares also climbed on large-scale production cuts in China and Iran’s export ban. POSCO Holdings jumped 11.74%, while Moonbae Steel surged 30% and Daeho Special Steel rose 29.95%.

The three main U.S. indexes were little changed. The Dow Jones Industrial Average fell 0.05% to 49,141.93. The S&P 500 dropped 0.49% to 7,138.80 and the Nasdaq Composite lost 0.92% to 24,663.80. Nvidia, the leading AI-chip stock, slipped 1.6% after The Wall Street Journal reported that OpenAI, which plans an initial public offering this year, failed to meet targets for new users and revenue. Broadcom fell 4.4%, Oracle dropped 4.1% and Micron declined 3.9%.

U.S. stock-index futures were little changed as of 8 a.m. Korea time on April 29. Dow futures were down about 0.1%, while S&P 500 futures and Nasdaq futures were up about 0.05% and 0.1%, respectively.

The market’s biggest event is the Fed’s FOMC meeting on April 29. The rate decision is due at 3 a.m. Korea time on April 30. Investors broadly expect the Fed to leave rates unchanged. Because it will be the last meeting Jerome Powell chairs before his term expires next month, his comments at the post-meeting press conference will also be closely watched.

Five of the so-called Magnificent Seven companies are scheduled to report first-quarter earnings on April 29 and April 30. Microsoft, Alphabet, Amazon and Meta will release results after the close on April 29, corresponding to the morning of April 30 in Korea. Apple will report on April 30, or the morning of May 1 in Korea. Investors are watching whether the tech heavyweights that have driven the recent U.S. rally deliver earnings surprises or disappoint.

In South Korea, the Bank of Korea is due around noon to release first-quarter foreign-exchange trading trends at foreign-exchange banks. Trading volume probably increased as foreign investment in local stocks grew and the won-dollar exchange rate rose. The market is also watching first-quarter export trends for small and medium-sized enterprises, due from the Ministry of SMEs and Startups, against a backdrop of Middle East tensions.

Japan’s stock market is closed on April 29 for Showa Day.

Han Ji-young, an analyst at Kiwoom Securities, said intraday volatility could temporarily rise in individual AI and semiconductor stocks until the Magnificent Seven earnings events are over. He added that investors should also monitor moves in Korean stocks tied to AI, including power-equipment and fuel-cell names.

Lee Mi-a, Hankyung.com reporter mia@hankyung.com