Kospi index peaks as government rejects tax hike proposal

Nikkei Futures Live

In early trading on Monday, Kospi index reached a record high of 3,420.23, achieving its 10th consecutive session of gains. This surge followed Finance Minister Koo Yun-cheol’s announcement that the government would abandon its earlier proposal to increase taxes on stock investments.

In other regions, Asia-Pacific markets exhibited a mixed performance as investors monitored the discussions between the U.S. and China in Spain, while evaluating a range of data emerging from Beijing. U.S. and Chinese officials initiated discussions in Madrid on Sunday to address critical national security, economic, and trade matters, including the impending deadline for the divestment of the Chinese short video application TikTok and the status of U.S. tariffs. Delegations headed by U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer engaged in discussions with their Chinese counterparts, Vice Premier He Lifeng and chief trade negotiator Li Chenggang.

The mainland’s economy experienced a deceleration in August, with retail sales and industrial output falling short of projections. The decline in real estate investment intensified, decreasing by 12.9% during the initial eight months, according to government data. The Japanese and Malaysian markets were closed due to a holiday. U.S. equity futures showed minimal movement during early Asian trading hours as investors prepare for an upcoming Federal Reserve meeting this week, anticipating a potential interest rate cut when the meeting concludes on Wednesday in the U.S.

  • Australia’s ASX/S&P 200 experienced a decline of 0.34%.
  • Hong Kong’s Hang Seng Index increased by 0.16%.
  • Hang Seng Tech index saw a rise of 0.27%.
  • China’s CSI 300 index saw an increase of 0.59%
  • The small-cap Kosdaq experienced an increase of 0.15%

On Friday in the U.S., the Nasdaq Composite reached a new record high, marking its second consecutive week of gains with a 2% increase during the period. The S&P 500 experienced a 1.6% increase week to date, marking its strongest weekly performance since early August. The Dow recorded its initial positive week in three, achieving a week-to-date increase of 1%. The significant increases follow the most recent economic data indicating a declining labor market and subdued inflation, which have fueled expectations for a Federal Reserve rate cut.