The exchange rate and bond rates fluctuated, causing both the KOSPI and KOSDAQ indices to start lower on the 22nd.
On this day, at 9:03 a.m., the KOSPI index recorded 2611.16, down 14.42 points (0.55%) from the previous day. At the same time, the KOSDAQ index fell 5.36 points (0.74%) to 718.26.
Among the top stocks by market capitalization in the KOSPI market, Samsung Electronics, LG Energy Solution, Hanwha Aerospace, KB Financial, and Hyundai Motor are all in a downtrend.
Among the top stocks by market capitalization in the KOSDAQ market, Alteogen and HLB stocks traded at higher prices compared to the previous day. Ecopro BM, Ecopro, Rainbow Robotics, and PharmaResearch are showing weakness.
In the Seoul foreign exchange market, the won-dollar exchange rate started trading at 1,377 won. This is a decrease of 10.2 won from the previous day. Expectations that the United States will pressure the Korean won, Japanese yen, Chinese yuan, and other Asian currencies to appreciate are dragging down the exchange rate. Reports have emerged that the U.S. and Japan will discuss exchange rates during the G7 finance ministers' meeting held until the 22nd and that the United States has requested the Korean won to appreciate.
Overnight, the poor auction of 20-year U.S. government bonds indicated that bond rates have risen again. Concerns grew as this was the first auction following Moody's downgrading of the U.S. sovereign credit rating. The yield on the benchmark 10-year U.S. government bonds, which acts as a reference for global bond rates, has exceeded 4.5% again.
The U.S. New York Stock Exchange also showed weakness. The Dow Jones Industrial Average closed down 1.91%. The Standard & Poor's (S&P) 500 index and the NASDAQ Composite index recorded respective declines of 1.61% and 1.41%.
Lee Seong-hoon, a researcher at Kiwoom Securities, predicted that a differentiated market would continue, focusing on sectors with upward momentum. He noted, "As the won-dollar exchange rate declines, the strengthening of the won could lead to increased profits, making aviation, travel, utilities, and domestic stocks show stronger performance than export stocks."