The KOSPI index opened sharply lower, dropping over 3% and falling below the 7,000 mark due to rising U.S. long-term interest rates and international oil prices. The U.S. Producer Price Index (PPI) for August exceeded expectations, while oil prices surpassed $100 per barrel, and the yield on 10-year U.S. Treasury bonds approached 5%, heightening concerns over inflation and interest rate hikes. However, analysts suggest that if the August Consumer Price Index (CPI) aligns with market expectations, the upward trends in oil and interest rates may reverse, potentially stabilizing the domestic stock market.
As of 9:25 a.m. on the 11th, the KOSPI was down 156.36 points (2.22%) at 6,877.56. The index initially fell 231.42 points (3.29%) to 6,802.50 before slightly recovering.
In terms of investor activity, individuals were net buyers, purchasing 1.2689 trillion won, while foreign and institutional investors sold 560.3 billion won and 853.2 billion won, respectively. Individuals absorbed the large sell-off from foreign and institutional investors.
Most of the top market capitalization stocks were in the red, including Samsung Electronics (-3.90%), SK Hynix (-4.37%), SK Square (-5.11%), Samsung Electro-Mechanics (-0.14%), LG Energy Solution (-0.96%), Hyundai Motor (-2.57%), Samsung Biologics (-0.35%), Samsung Life Insurance (-3.07%), and Samsung C&T (-4.22%).
The KOSDAQ index also opened sharply lower. At the same time, the KOSDAQ was trading at 825.38, down 11.54 points (1.38%) from the previous trading day. The index started at 816.91, down 20.01 points (2.39%), before recovering some losses.
In the KOSDAQ market, individuals were net buyers, purchasing 138.7 billion won, while foreign and institutional investors sold 94.1 billion won and 40.8 billion won, respectively.
Among the top market capitalization stocks, Alteogen (-2.35%), EcoPro (-2.76%), EcoPro BM (-3.88%), Rainbow Robotics (-3.01%), Wonik IPS (-3.79%), IOTech (-3.19%), and Rino Technology (-3.75%) were all down. Conversely, JUSUNG Engineering saw a 2.04% increase.
Earlier on the 10th, U.S. markets experienced their fourth consecutive day of declines amid growing macroeconomic uncertainty. The Dow Jones Industrial Average fell 0.60%, while the S&P 500 and Nasdaq dropped 0.58% and 0.65%, respectively.
Analysts note that while rising interest rates and oil prices, along with concerns over the August U.S. CPI, will likely lead to increased short-term volatility, the earnings strength of the domestic market remains solid. They emphasize that the profit momentum of leading sectors such as AI and semiconductors is still intact, suggesting that any index adjustments due to macro shocks are unlikely to result in a sustained decline.
Han Ji-young, a researcher at Kiwoom Securities, stated, "As the U.S. 10-year bond yield approaches 5% and WTI surpasses $100, the pressure from rising rates and oil prices is increasing. However, the earnings strength of leading sectors like AI and semiconductors remains robust. If the August CPI meets market expectations, the upward trends in oil and interest rates may reverse, helping to maintain stability in the stock market."
She added, "Oracle's strong performance could contribute to a reduction in the domestic market's losses. If the CPI does not deviate significantly from consensus, the recovery path for the stock market is likely to be maintained even amid volatility leading up to the September FOMC meeting."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.