US August PCE inflation data and Micron's earnings are expected to be decisive for Korean stocks this week. The KOSPI has recovered the 7,000 level, and its direction from here will depend on the October FOMC meeting and the US jobs report.
In the week following the Chuseok holiday, South Korea's stock market will be seeking direction ahead of the release of the US August PCE price index and Micron Technology's earnings. The KOSPI recovered the 7,000 level last week and closed at 7080.92. The market is expected to remain largely unshaken by the extension of the tariff truce at the US-China summit, while continuing to react sensitively to oil prices and interest-rate movements.
The PCE data and Micron's earnings, both due on the 30th, will serve respectively as leading indicators for inflation trends and the semiconductor industry. Headline PCE is expected to rise 3.7% year on year in August, with core PCE up 3.4%, potentially directly affecting the probability of a rate hike at the US FOMC meeting in October. Micron has indicated current-period revenue of $50.4 billion-$51.0 billion and EPS of $31.2-$31.4. The focus will be on whether its next-quarter revenue forecast of $56.9 billion exceeds market expectations.