KOSPI Opens Higher Above 4,100 on Hopes of U.S. Government Shutdown Resolution [fn Morning Market Report]

[Financial News] The Korea Composite Stock Price Index (KOSPI) reclaimed the 4,100 mark on the 11th, buoyed by expectations of a resolution to the Federal government of the United States' government shutdown.
As of 10:30 a.m., the KOSPI was trading at 4,160.41, up 87.17 points (2.14%) from the previous session. The index opened at 4,124.30, a 1.25% increase from the previous close.
In the KOSPI Market, foreign investors recorded a net purchase of 42.9 billion KRW. Meanwhile, institutions and individuals sold 63.4 billion KRW and 41.4 billion KRW, respectively. Institutions also made net purchases of 149.3 billion KRW in the futures market.
By sector, electrical and electronics (4.41%), utilities (3.82%), and textiles and apparel (3.80%) showed gains. In contrast, entertainment and culture (-4.20%), securities (-1.94%), and food, beverage, and tobacco (-1.46%) weakened.
Most of the large-cap stocks were strong. Samsung Electronics rose 4.67%, SK hynix 4.79%, LG Energy Solution 3.01%, Hyundai Motor 0.37%, and Doosan Enerbility 0.25%.
The market is pinning hopes on the end of the U.S. government shutdown. If the Federal government of the United States resumes operations and releases delayed key economic indicators, the results could influence the Federal Reserve System (Fed) to implement additional rate cuts.
Ji Young Han, a researcher at KIWOOM Securities, stated, "Recently, despite growing concerns over an artificial intelligence (AI) bubble and other negative factors, there have been few positive catalysts. Market participants appear to have found momentum for a rebound in the end of the government shutdown." He added, "Broadly, it is necessary to reflect factors such as U.S. employment slowdown, easing inflationary pressures, and a potential 25bp Fed rate cut in December in future market strategies."
At the same time, the Korean Securities Dealers Automated Quotations (KOSDAQ) was trading at 894.56, up 6.21 points (0.70%) from the previous session. The index opened at 893.91, up 5.56 points (0.62%) from the previous close.
In the KOSDAQ market, individuals and institutions recorded net sales of 24.4 billion KRW and 12.1 billion KRW, respectively, while foreign investors purchased 57.3 billion KRW.

yimsh0214@fnnews.com Im Sang-hyuk Reporter