The KOSPI has fallen below the 6,800 mark amid net selling by foreign investors and institutional investors. This is interpreted as a sign of increased risk aversion, following overnight US 10-year Treasury yields hitting their highest level since 2022. Despite Micron reporting "surprise earnings" for the June-August period, Samsung Electronics and SK Hynix are trading slightly lower.
As of 9:26 a.m. on the 1st, the KOSPI stood at 6,792.00, down 46.04 points (0.67%) from the previous trading day.
In New York overnight, the US Department of Commerce's August Personal Consumption Expenditures (PCE) price index came in below market expectations, leading to intraday gains. However, the upward momentum gradually faded as the session drew to a close. On the 30th (local time), the S&P 500 index on the New York Stock Exchange closed at 7,651.54, down 19.3 points (0.25%) from the previous session. The Dow Jones Industrial Average closed at 59,908.79, slipping 441.13 points (0.86%). Conversely, the NASDAQ Composite Index ended trading at 26,861.06, up 63.52 points (0.24%).
On this day in the New York stock market, tech stocks led intraday gains as the likelihood of a Federal Reserve (Fed) rate hike in October diminished. This was influenced by the August Personal Consumption Expenditures (PCE) price index rising 3.4% year-on-year, falling short of the market forecast of 3.7%. According to the Chicago Mercantile Exchange (CME) FedWatch tool, the probability of a 0.25 percentage point rate hike by the Federal Reserve in October dropped from approximately 51% the previous day to around 37% during the session on this day.
However, long-term Treasury yields rose as growth and employment indicators came in stronger than expected. In particular, the final US second-quarter gross domestic product (GDP) growth rate was revised upward from the previously reported 1.5% to an annualized 2.2%. During the session, US 10-year Treasury yields climbed to 5.304%, marking their highest level since May 2002.
After the market close, Micron announced an earnings beat that exceeded market expectations. Micron revealed that its adjusted earnings per share (EPS) for the June-August quarter was $33.42, a significant increase from $3.03 in the same period last year. This surpassed the analyst forecast of $31.72 aggregated by FactSet.
Revenue for the same period surged 379% year-on-year to $54 billion, also exceeding the analyst forecast of $51 billion. The gross profit margin for this period reached 87%, a record high.
In the KOSPI market on this day (based on the combined Korea Exchange and Nexttrade criteria), foreign investors and institutional investors recorded net sales of 327.7 billion won and 120.2 billion won, respectively. Retail investors made net purchases of 437.1 billion won.
A majority of KOSPI sectors are trading near flat levels. The financial sector is down by over 1%. Electronics, chemicals, manufacturing, insurance, distribution, telecommunications, and securities are trading slightly lower. Real estate, construction, metals, pharmaceuticals, and electricity/gas are showing slight gains. Transportation/warehousing, machinery/equipment, and textiles/apparel are up by over 1%. Medical/precision instruments are rising by more than 3%.
Among top KOSPI market capitalization stocks, SK Square and Samsung Electro-Mechanics are down by over 2%. Samsung Electronics, SK Hynix, LG Energy Solution, and KB Financial Group are trading slightly lower. Hyundai Motor, Samsung C&T, Doosan Enerbility, and Hanwha Aerospace are showing slight gains.
The KOSDAQ is at 859.88, up 3.97 points (0.46%) from the previous trading day. The KOSDAQ opened lower on this day at 853.96, down 1.95 points (0.23%), but successfully turned positive in the early session.
In the KOSDAQ market, retail investors made net purchases of 63.8 billion won. Foreign investors and institutional investors recorded net sales of 22.2 billion won and 20.5 billion won, respectively.
Among KOSDAQ sectors, textiles/apparel is up by over 2%. Machinery/equipment and chemicals are rising by more than 1%. Manufacturing, medical/precision instruments, electronics, non-metals, transportation equipment/parts, financials, distribution, and IT (information and communications) services are showing slight gains. Metals, construction, telecommunications, pharmaceuticals, and food/tobacco are trading slightly lower.
Among top KOSDAQ market capitalization stocks, Wonik IPS is up by more than 3%. Rino Industrial and HPSP are up by over 2%, while IoTech is rising by over 1%. Ecopro is showing slight gains, whereas Alteogen, Jusung Engineering, Ecopro BM, RAINBOW Robotics, and Simtech are trading slightly lower.
In the Seoul foreign exchange market at 9:00 a.m. on this day, the won/dollar exchange rate was trading at 1,358.5 won, up 2.8 won from the previous trading day.
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