Markets Tread Water: US Rate Decision Looms

The KOSPI index began the session with positive momentum but has since turned downward, fluctuating near the break-even point. This cautious trading environment stems from investor anticipation of the U.S. Federal Reserve's upcoming interest rate decision. Both foreign and institutional investors have shown a tendency to sell, contributing to the index's lack of clear direction.

Globally, U.S. stock markets closed higher last Friday, influenced by favorable inflation data and strong tech stock performance. However, gains were limited as markets await the Federal Open Market Committee (FOMC) announcement. This sentiment has translated to the domestic market, with individual investors being the primary net buyers.

Conversely, the KOSDAQ index is exhibiting a strong upward trend, with its gains expanding in early trading. Large-cap stocks are leading this surge, with notable increases in companies like Alteogen, EcoPro BM, and EcoPro. Foreign investors are actively buying in the KOSDAQ market.