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By Jhoo Dong-chan
The benchmark KOSPI has continued on its bullish run since it recovered the 2,000-point mark last week thanks to a series of favorable overseas news stories.
The Seoul bourse started gaining upward momentum Sept. 5 when Washington and Beijing agreed to return to the negotiating table to discuss trade. Hong Kong's Sept. 4 announcement to cancel an extradition bill was another factor behind the bourse's gain over the past week.
On those developments, the KOSPI recovered the 2,000-point mark Sept. 5, gaining 16.22 points, or 0.82 percent, to close at 2,004.75, and has since climbed for seven days in a row.
It closed at 2,049.2 points Wednesday, up 0.84 percent from the previous session. The secondary Kosdaq also jumped 1.14 percent to end at 630.37.
Market analysts displayed a mixed outlook on the future course of the nation's stock market.
"The Federal Reserve will convene the Federal Open Market Committee (FOMC) meeting this month to discuss the country's policy rates. It's likely to lower rates this month," Hana Financial Investment researcher Lee Jae-man said.
"The Fed may not lower rates by a huge margin, but it's almost certain it will cut it by 25 basis points."
The Chicago Mercantile Exchange Fedwatch currently sees a 93.5 percent chance that the FOMC will cut the interest rate by 25 basis points.
Foreign investors, who sold 2 trillion won ($1.67 billion) worth of Seoul shares last month, have also returned with a stream of purchases for three days in a row.
"I believe the KOSPI could reach up to 2,350 points after the FOMC meeting," Shinhan Investment analyst Kwak Hyun-soo said.
However, Hyundai Motor Securities researcher Kang Jae-hyun displayed reservations about the prevailing optimism.
"It's difficult to consider the renewed talks between Washington and Beijing as the tipping point to settle their trade dispute," Kang said.
"Washington still wants Beijing to import U.S. agricultural products while revising its fiscal policy in yuan. The Chinese government is unlikely to comply fully with Washington's demands."
