- Against the previous week's ultra-strong ascent, the KOSDAQ50 Index futures market took a correction over the week in spite of the Moody's upgrade on the Korea's sovereign credit rating by two notches to A3.
- The KTB futures market rebounded this week against the previous descent trend that has been continued since the middle of February.
- At the USD/KRW F/X market, the lead month contract USD204 decreased by 3.7 KRW per USD or 0.27 percent during the week finishing the week at KRW 1,327.1.
KOSDAQ50 Index Futures Market
Against the previous week's ultra-strong ascent, the KOSDAQ50 Index futures market took a correction over the week in spite of the big news that Moody's upgraded the Korea's sovereign credit rating by two notches to A3 on Thursday. The upgrade means that Moody's allowed the country to recover the "A" grade level it maintained before the 1997 financial crisis. With this upgrade, Korea is on par with Hong Kong, Hungary and China in terms of the sovereign rating.
The leading month contract, KQ206 lost 6 points or 4.53 percent during the week to reach at 126.30 points on weekend fluctuating in a band of 123.85 to 127.70 points. At the same time, both the cash KOSPI and the KOSDAQ Index decreased slightly by 0.4 points or 0.04 percent and 1.57 points or 1.66 percent each reaching at 895.58 points and 92.73 points on weekend respectively.
The major reasons for the weakness in the KOSDAQ50 Index futures market are as follows:
- Growing concern on the overheating of domestic economy wary of the formation of a bubble particularly in stock and housing markets
- Similar correction in the US stock markets
- Continued great amount of net selling by foreigner amounting up to KRW 270.5 billion in the KSE market only
Korea Treasury bond Futures Market
The KTB futures market rebounded this week against the previous descent trend that has been continued since the middle of February. The leading month contract KTB206 increased by 52 ticks during the week closing the trading at 103.15 on Friday.
The major reasons for the rebound in the KTB futures market are as follows:
- The US Fed's confirmation on no sudden hike in interest rate
- A comment by a high-level Korean governmental official that the current low interest rate policy is likely to be maintained until an export performance improves
USD/KRW Currency Futures Market
In the KOFEX F/X futures market, the lead month contract USD204 decreased by 3.7 KRW per USD or 0.27 percent during the week finishing the week at KRW 1,327.1 in spite of the steep increase in net stock selling by foreigners in local stock markets, totaling up KRW 270.5 billion in KSE and KRW 112.9 billion in KOSDAQ.
The major reasons for the ascent, albeit slight, are as follows:
- Credit rating hike by Moody's and month-end export increase
- Yen's strength against USD to the 132-level
