KOSPI Range-Bound as US Inflation Data Looms

The South Korean stock market is expected to remain directionless this week as investors await inflation indicators from the US. The KOSPI closed at 6,687.21 on September 4, up 1.64 percent, after a second consecutive day of gains. While strong semiconductor results and solid exports are supporting the index, U.S. long-term yields and instability in the Middle East are limiting upside momentum.

The market's focus will shift from jobs to inflation this week, with the US Bureau of Labor Statistics releasing the August producer price index on September 10 and the consumer price index on September 11. If inflation stays within expectations or eases, it could reduce concerns about additional tightening that have risen on strong employment.

Solid corporate earnings are also a support for the market, with Korea's August exports rising 68.7 percent from a year earlier to $98.25 billion. Semiconductor exports jumped 209 percent to $46.65 billion, hitting a record high.