The South Korean stock market halted a two-day fall on Wednesday, which had brought the Korea Composite Stock Price Index (KOSPI) down more than 40 points or 1.7 percent. Although the KOSPI is currently just over the 2,650-point mark, it might experience a further dip on Thursday.
Global prospects for Asian markets suggest caution before key U.S. inflation data due to be released. European markets were inconsistent and U.S. markets fell, thus it's predicted that Asian markets will find a midway.
Wednesday saw a significant rise in the KOSPI due to gains from financial stocks, automotive manufacturers, energy firms, and technology companies. The index rose 27.24 points or 1.04 percent, ending at 2,652.29 with a trading range of 2,623.15 to 2,657.32. Overall, there were 559 gainers and 302 decliners contributing to a trading volume of 409.7 million shares worth 10 trillion won.
In activity, Shinhan Financial saw a 2.14 percent rise, KB Financial went up 2.35 percent, and Hana Financial increased 1.65 percent. Samsung Electronics went up slightly by 0.41 percent, while Samsung SDI increased by 0.13 percent. On the other hand, LG Electronics took a slight dip of 0.83 percent.
Among other stocks, SK Hynix reached a 2.73 percent hike, Naver grew 2.00 percent, while LG Chem saw a slight fall of 0.32 percent. Other performers included Lotte Chemical with a growth of 1.27 percent, S-Oil jumping 4.12 percent, SK Innovation rising 0.84 percent, POSCO climbing 3.06 percent, SK Telecom rising 0.38 percent, KEPCO adding 1.24 percent, Hyundai Mobis spiking 3.64 percent, Hyundai Motor accelerating 3.98 percent, and Kia Motors surging 4.53 percent.
The major averages in Wall Street opened sharply lower on Wednesday. Although losses were minimized as the day progressed, the major averages ended the day in the red.
The Dow slipped 23.39 points or 0.06 percent to close at 38,949.02, and the NASDAQ fell 87.56 points or 0.55 percent. The S&P 500 decreased 8.42 points or 0.17 percent to close at 5,069.76.
Wall Street's early weakness resulted from traders cashing in on recent market strength, particularly ahead of the release of closely watched readings on consumer price inflation. The Federal Reserve's officials have noted that greater confidence in slowing inflation is needed before contemplating interest rate cuts, underscoring the importance of the upcoming data.
In line with economic news, the Commerce Department reported a downward revision to the fourth-quarter real gross domestic product (GDP) growth, from the previously reported 3.3 percent to 3.2 percent.
Oil prices slipped on Wednesday after data showed an unexpectedly large increase in U.S. crude inventories. Consequently, West Texas Intermediate Crude oil futures for April moved down $0.33 or 0.42 percent to close the day at $78.54 a barrel.
