South Korean stock market hits 4-year high; US tech earnings week and FOMC become key variables

Source: BlockMedia Original Title: [Market Opening] ‘Five Thousand P’ Starts, ‘Thousand Stock Market’ After 4 Years… Bio and Secondary Batteries Rise Together Original Link:

South Korean Stock Market Opens Strong, Reaches 4-Year High

On the 26th, the South Korean stock market opened high, with the KOSPI index fluctuating around 5000 points. As of 9:23 AM that morning, the KOSPI index rose 12.14 points (0.24%) from the previous trading day, closing at 5002.21. After opening at 4997.54, the KOSPI recovered above 5000 points, reaching a high of 5023.76 during the session, then fluctuating around the initial 5000-point level.

The top 10 companies by market capitalization on the KOSPI showed mixed movements. Samsung Electronics increased by 1.38% to 154,200 KRW; LG Energy Solution rose 0.97%; Samsung Biologics increased 0.17%. Hanwha Aerospace surged 2.23%, Doosan Energy gained 0.21%, and defense and energy-related stocks remained relatively strong.

SK Hynix fell 2.48% to 748,000 KRW; Hyundai Motor declined 0.59% to 507,000 KRW. Hyundai Heavy Industries dropped 1.28%, Kia decreased 0.75%, closing at 157,800 KRW.

In terms of supply and demand, individual investors bought 189.9 billion KRW, while foreign investors and institutions sold 88.2 billion KRW and 100.2 billion KRW respectively.

KOSDAQ Hits 4-Year High, Biotech Leads

Meanwhile, the KOSDAQ index rose 26.35 points (2.65%) to 1020.28, breaking the 1000-point mark for the first time in four years. The KOSDAQ opened at 1003.90, up 1.00% from the previous day.

Leading stocks by market cap on the KOSDAQ advanced together. Alteogen increased 2.71%, EcoPro BYD rose 8.09%, EcoPro gained 5.10%.

Biotech stocks performed notably, with ABL Bio surging 14.65%, Samchully Pharmaceuticals up 4.86%, HLB up 2.97%. Rainbow Robotics increased 8.91%, Kolon TissueGene rose 6.74%, Ligand ChemBio gained 8.38%, Peptron increased 4.33%.

In terms of supply and demand, individual investors sold 283.4 billion KRW, while foreign investors and institutions bought 25.4 billion KRW and 277.8 billion KRW respectively.

Global Financial Markets Focus: US Tech Earnings and FOMC Meeting

On the 23rd, US stocks closed mixed. The Dow Jones Industrial Average fell 0.58% to 49,098.71; the S&P 500 rose 0.03% to 6,915.61; the Nasdaq increased 0.28% to 23,501.24.

Weekly, the S&P 500 declined 0.4%, marking the first consecutive two-week decline since June last year, and the Nasdaq also fell about 0.1%. Cautious market sentiment persists.

Among the mixed movements, semiconductor and large tech stocks supported the downside of the indices. A major chip giant rose 1.53% on news that Chinese authorities are preparing to approve its AI chip orders, AMD increased 2.35%, and Microsoft rose over 3%, injecting warmth into tech stocks.

In contrast, Intel’s stock plummeted 17% due to poor earnings outlook and productivity issues. Its Q1 guidance was well below market expectations, with concerns over yield rates and large client acquisition also prominent. Intel’s CEO stated, “We are undergoing a multi-year restructuring process that requires time and decisive action.”

Next market-moving events are the scheduled earnings reports of major tech companies this week and the Federal Reserve’s monetary policy meeting. On the 28th, Microsoft, Meta, and Tesla will release earnings; Apple will report on the 29th. Given that the so-called “Big Seven” stocks have fallen by double digits from their highs, earnings results may trigger a rebound in stock prices.

Additionally, the Federal Reserve is expected to keep the benchmark interest rate unchanged at the FOMC meeting on the 27th-28th. The market’s focus is less on the rate decision itself and more on signals from Fed Chair Jerome Powell regarding future rate paths during the press conference.

The next Fed Chair candidate also becomes a new variable. The Trump administration may announce the next chair candidate as early as this week, with some top asset managers’ CIOs being considered. However, limited market information on candidates may increase short-term uncertainty.

Domestic Stock Market Focus: Key Companies’ Q4 Earnings

The main focus in the domestic stock market is on Q4 earnings of major industries such as Samsung Electronics, SK Hynix, Hyundai Motor, and Kia.

A securities analyst stated, “Considering these stocks have been the main drivers pushing the KOSPI above 5000 points since January, changes in market expectations after Q4 earnings releases will determine their continued dominance.”

She added, “Given that the stock prices of these semiconductor stocks have already partially reflected Q4 earnings expectations since the start of the year, focus should be on conference calls that confirm the HBM4 roadmap and the supply-demand environment for general memory.”

She forecasts the KOSPI’s expected weekly fluctuation range to be 4880-5120 points.

Exchange Rate Trends

In Seoul’s foreign exchange market, the KRW/USD exchange rate closed 19.7 KRW lower than the previous trading day’s close, opening at 1446.1 KRW.