'Political Uncertainty Expands' KOSPI and KOSDAQ Start Lower... Exchange Rate ↑

Korea Economic Daily

Summary

As domestic political uncertainty expands, the KOSPI and KOSDAQ indices are showing a downward trend, with net selling by foreigners and institutions causing the indices to fall.
The won-dollar exchange rate has risen to the 1430 won level, showing weakness in the Korean won, while individual investors are net buying alone.
The New York Stock Exchange showed an upward trend due to strong earnings announcements from MS and Meta, but it did not affect the domestic market.

Won-Dollar Exchange Rate at 1430 Won Level

Amid expanding domestic political uncertainty, the KOSPI and KOSDAQ indices started lower. The Korean won is also showing weakness.

As of 9:04 a.m. on the 2nd, the KOSPI is indicating 2548.59, down 8.02 points (0.31%) from the previous trading day. Opening at 2556.52, the KOSPI is showing a downward trend.

In the stock market, foreigners and institutions are net selling 1025 billion won and 254 billion won, respectively. Individuals are net buying 1254 billion won alone.

The top stocks by market capitalization on the KOSPI are generally declining. Hyundai Mobis (-1.5%), Hanwha Aerospace (-0.88%), Samsung Electronics (-0.81%), Shinhan Financial Group (-0.78%), LG Energy Solution (-0.77%), Hyundai Motor (-0.58%), Naver (-0.5%), Kia (-0.33%), and Celltrion (-0.12%) are showing declines. SK Hynix (0.73%) and HD Hyundai Heavy Industries (0.37%) are showing strength.

The KOSDAQ index is indicating 714.41, down 2.83 points (0.39%) from the previous session. The index opened at 716.6, down 0.64 points (0.09%), and is expanding its decline.

In the KOSDAQ market, foreigners and institutions are net selling 132 billion won and 4 billion won, dragging down the index. Individuals are net buying 124 billion won.

The top stocks by market capitalization on the KOSDAQ are mixed. EcoPro (-2.84%), Peptron (-2.51%), Kolon TissueGene (-1.97%), Rainbow Robotics (-1.66%), EcoPro BM (-1.48%), ABL Bio (-1.23%), and Ligand Bio (-1.05%) are down more than 1%. PharmaResearch (4.45%), SM (1.94%), HLB (1.23%), Classys (0.93%), and Samchundang Pharm (0.64%) are strong.

The won-dollar exchange rate is indicating 1434.7 won.

The three major indices of the New York Stock Exchange rose together. Investor sentiment was boosted as Microsoft (MS) and Meta announced strong earnings. News also emerged that the U.S. and China are engaging in trade negotiations.

On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 40752.96, up 83.6 points (0.21%) from the previous day. The Standard & Poor's (S&P) 500 index rose 35.08 points (0.63%) to 5604.14, and the Nasdaq index jumped 264.40 points (1.52%) to close at 17710.74.

Jin Young-gi, Hankyung.com reporter young71@hankyung.com