“KOSPI heads to 2800 this week… Inventory market outlook ‘up’ resulting from US-China heat climate

Safety analysts anticipated that the KOSPI index may cross the 2800 stage this week. The evaluation is that expectations of a US rate of interest lower and the restoration of Chinese language consumption momentum will contribute to the KOSPI index.

Based on the monetary funding trade on the sixteenth, Daishin Securities (003540) anticipated the KOSPI this week to exceed this 12 months’s excessive of 2779.40 (2757.09 as of March 26, closing value) and lengthen to mid to late 2800s. NH Funding & Securities (005940) additionally displayed 2800 as the highest of the KOSPI this week.

The US rate of interest lower was anticipated to be optimistic information. The US inventory market continues its march to larger ranges, led by the Nasdaq and Normal & Poor’s (S&P) 500. The KOSPI additionally rose for the fourth consecutive buying and selling day in keeping with the nice and cozy climate within the States United. On the thirteenth, it rose to 2776.72 throughout buying and selling, working the ointment level to the top.

Kyeong-min Lee, a researcher at Daishin Securities, stated, “There’s a sense of reduction out there as we affirm the outcomes of the June assembly of the US Federal Open Market Committee (FOMC), which fueled investor nervousness, and the Client Worth Index (CPI) and Producer Worth Index (PPI) leads to Could “It got here in,” he stated.

The truth is, the June FOMC was hawkish on the floor, however a deceptive rationalization was provided that the variety of rate of interest cuts in 2025 and 2026 may broaden from three to 4, respectively, and that the year-end rate of interest may the 2026 to be. maintained at 3.1%. Though the timing of rate of interest cuts has been delayed, it has been confirmed that the cycle of rate of interest cuts aimed toward normalizing financial coverage is efficient.

As well as, the Could CPI and PPI outcomes, which weren’t mirrored within the FOMC, had been decrease than anticipated, elevating expectations of a lower. CPI, the primary inflation indicator, rose 3.3% in comparison with the identical month final 12 months, slowing from 3.4% in April. PPI additionally fell 0.2% in comparison with the earlier month, falling under market expectations (0.1%). Indicators that inflationary pressures are easing have begun to extend. There have been additionally predictions that if the CPI decline in June is confirmed, an rate of interest lower might be within the offing.

Daishin Securities expects Chinese language spending momentum to select up subsequent week as properly. It’s anticipated that retail gross sales in Could, a bodily indicator to be introduced on the seventeenth, will develop 3% in comparison with the earlier 12 months, bettering in comparison with 2.3% in April. Spending momentum is reversing for the primary time in six months.

Researcher Lee stated, “With a transparent restoration in manufacturing and export momentum, prospects for China’s financial restoration will develop as consumption momentum recovers,” he added, “The yuan will strengthen and which is able to achieve towards the greenback, and web purchases of international forex will circulation. in.” I anticipated it.

Export shares, together with semiconductors, have been chosen as sectors to concentrate on.

Lee Hyuk-jin, a researcher at Samsung Securities (016360) stated, “Semiconductors are anticipated to rise additional round Micron’s earnings announcement within the early morning of the twenty seventh (Korea time) and the discharge of Samsung Electronics’ (005930) interim earnings in second quarter in early July.

Na Jeong-hwan, a researcher at NH Funding & Securities, stated, “There’s nonetheless a chance of an rate of interest lower within the second half of the 12 months and an expectation of the expansion of the AI ​​trade. Exports proceed to be sturdy, with Korea’s common each day export quantity rising 11.2% from June 1 to 10, resulting in Okay-culture, in addition to associated cosmetics,” he stated.

(Seoul = Information 1)