The KOSPI index closed down by more than 1% ahead of Federal Reserve Chairman Kevin Warsh's Jackson Hole meeting speech. Warsh's speech, which will gauge the direction of U.S. monetary policy, is being cited as a key variable that could influence stock market trends. While the securities industry noted that caution has strengthened in the stock market, some raised the possibility that the KOSPI index would soon recover to the 7,000 level based on expectations for improved corporate earnings.
On the 28th, the KOSPI index closed at 6,788.88, down 123.49 points (1.79%) from the previous day. Starting the session at 6,846.54 (-0.95%), the KOSPI rose to as high as 6,901.78 (-0.15%) during trading before falling to as low as 6,780.13 (-1.91%).
Market flows showed a sharp increase in foreign selling from early trading until the close. At 9:13 a.m., when the market opened, net selling by institutional investors and foreigners was 116.5 billion won and 40.7 billion won, respectively, with institutional investors showing larger outflows. However, at the close, foreign selling reached 1.7563 trillion won compared to 284.4 billion won for institutional investors, surpassing institutional investor outflows. Foreign net selling increased by approximately 43 times, while institutional investor net selling rose by about 2.4 times. Retail investors recorded a net purchase of 424.5 billion won, an increase of about 4.4 times.
Samsung Electronics closed down 3.38% at 257,000 won. SK Hynix closed down 4.45% at 1.653 million won. Reports emerged that the United States is considering imposing additional tariffs on IT products containing semiconductors, such as imported semiconductors, servers, and laptops, highlighting policy uncertainty and dampening investor sentiment in semiconductor stocks.
Among the top market capitalization companies, Samsung Bioepis (-6.78%), Samsung Electronics Preferred (-3.86%), SK Square (-3.75%), and LG Energy Solution (-0.13%) declined.
The KOSDAQ index closed up 0.76 points (0.09%) at 838.41 from the previous day. Starting at 835.23 (-0.29%), it rose to as high as 840.85 (+0.38%) during trading before falling to as low as 829.59 (-0.96%).
Overnight, the New York stock market rose on the back of Nvidia's earnings report. On the 27th (local time), the Dow Jones Industrial Average closed up 0.20% at 53,569.44. The S&P 500 index closed up 0.72% at 7,730.99, and the NASDAQ Composite Index closed up 1.57% at 26,541.35. Nvidia announced earnings after market close on the 26th (local time) that exceeded market expectations, causing its stock to surge 8.74% in regular trading the following day.
The market views the content of Chairman Warsh's Jackson Hole speech scheduled for tonight as a key variable that will gauge future monetary policy direction. The Jackson Hole meeting is an annual international economic policy symposium held in late August each year in Jackson Hole, Wyoming, USA, led by the Federal Reserve Bank of Kansas City. This year, since it is Chairman Warsh's first Jackson Hole speech after taking office as Federal Reserve Chair, interest centers on what judgments and policy directions he will present regarding U.S. inflation and future interest rate paths.
According to Kiwoom Securities, as of the 27th, the KOSPI operating profit consensus estimates for 2026 and 2027 were 989.7 trillion won and 1,314.3 trillion won, respectively, higher than the late July figures of 974.9 trillion won and 1,310.9 trillion won. The leading price-to-earnings ratio (PER) is around 5.5 times, and the KOSPI Volatility Index (VKOSPI) has fallen from around 84 points in late July to around 53 points.
Han Ji-young, a researcher at Kiwoom Securities, said, "Whether breaking through 6,900 or 7,000 makes only a 100-point difference, but we can expect psychological momentum and the effect of breaking resistance lines due to changes in the leading digits of the index." He added, "Even if the 7,000 level is not breached today, it is more likely that the medium-term recovery trend will be extended by succeeding in breaking through next week or in September."
Lim Jeong-eun, a researcher at KB Securities, said, "Chairman Warsh of the Federal Reserve is scheduled to deliver his Jackson Hole keynote speech tonight. We need to confirm messages related to monetary policy, and next week, U.S. employment data and earnings reports from Broadcom and other AI-related companies are scheduled."
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