KOSPI Rises 1% as U.S. Recession Fears Subside

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A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Monday.

On Monday, the Kospi index in South Korea made a positive start, rising by 26.81 points, or 1.04%, to reach 2,615.24 in the first 15 minutes of trading. This upward movement follows a significant sell-off last week, driven by concerns about a potential U.S. recession. The rebound indicates a degree of recovery in investor sentiment, as fears of an economic downturn in the U.S. have eased somewhat.

U.S. Market Impact

The positive start for the Kospi aligns with the broader trend seen in major U.S. indexes, which ended higher on Friday. This improvement was supported by better-than-expected unemployment data, which helped mitigate recession fears. Investors are now looking forward to upcoming economic data releases from the U.S., including the consumer price index (CPI), producer price index (PPI), and retail sales figures. These reports are expected to provide further insights into economic conditions and influence market movements.

South Korean Big-Cap Stocks

Several major South Korean companies saw gains in their stock prices as the market opened:

Automotive Sector:

Declining Stocks

Not all stocks followed the upward trend:

Summary

The Kospi’s positive start on Monday signifies a partial recovery from the previous week’s downturn. This rebound is supported by a more optimistic outlook following recent U.S. economic data, which has eased recession fears. Major South Korean stocks, particularly in the technology and automotive sectors, have shown strong performance, while some companies faced declines. The upcoming U.S. economic data will be crucial in determining whether this recovery can be sustained or if further volatility lies ahead.

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