KOSPI and KOSDAQ Both 'Rise' on Positive Momentum from the US... SK hynix Up 2%

Net Selling by Foreigners and Institutions

USD/KRW Exchange Rate in the 1,380 KRW Range

The KOSPI and KOSDAQ indices are both showing gains in early trading. The increase in the U.S. Consumer Price Index (CPI) came in below expectations, boosting the outlook for interest rate cuts.

As of 9:04 a.m. on the 13th, the KOSPI is trading at 3,226.37, up 36.46 points (1.14%) from the previous day. Having opened at 3,225.4, the KOSPI is exhibiting an upward trend. In the main exchange market, individual investors are net buying 37.2 billion KRW alone. Institutions and foreigners are net selling 36.1 billion KRW and 4.9 billion KRW, respectively.

The lower-than-expected U.S. CPI has heightened expectations for a rate cut and improved investor sentiment. Previously, the U.S. Department of Labor announced that the July U.S. CPI rose 2.7% year-on-year. This is the same as June (2.7%) and falls below the Dow Jones expert consensus forecast (2.8% increase).

Most of the top market cap stocks are tracing upward curves. Standout gains are seen among shipbuilding stocks such as HD Hyundai Heavy Industries (3.4%) and Hanwha Ocean (3.37%), with SK hynix (2.79%), Doosan Enerbility (1.68%), Kia (1.18%), Samsung Biologics (1.18%), Shinhan Financial Group (1.14%), KB Financial Group (1.05%), Hyundai Motor Company (0.94%), and Samsung Electronics (0.84%) also rising.

The KOSDAQ index is also up 6.66 points (0.83%), standing at 813.85. Beginning the session at 816.54, the KOSDAQ is hovering around the 810 range during trading hours.

In the KOSDAQ market, individual investors are net buying 51.4 billion KRW. Foreigners and institutions are net selling 30.4 billion KRW and 6.1 billion KRW, respectively.

Top market cap stocks on KOSDAQ are also showing strength. ABL Bio (3.37%), LIG Chem Bio (2.77%), PharmaResearch (2.39%), Classys (2.36%), Alteogen (1.61%), Samchundang Pharm (1.42%), EcoPro (1.4%), Leeno Industrial (1.19%), EcoPro BM (0.82%), and HLB (0.61%) are all in the green.

The USD/KRW exchange rate is at 1,384.7 KRW.

On the 12th (local time), the Dow Jones Industrial Average closed at 44,458.61, up 483.52 points (1.1%) from the previous session. The S&P 500 Index rose 72.31 points (1.13%) to 6,445.76, while the NASDAQ climbed 296.5 points (1.39%) to finish at 21,681.9. Both the S&P 500 Index and NASDAQ closed at new record highs for closing prices.

According to FedWatch from the Chicago Mercantile Exchange (CME), the interest rate futures market reflected a 94% probability that the Federal Reserve (Fed) will cut the benchmark rate by 0.25 percentage points at the Federal Open Market Committee (FOMC) meeting in September. This is up 8 percentage points from the previous day.

— Youngki Jin, Hankyung.com Reporter young71@hankyung.com