The South Korean stock market has experienced a decline over the past two sessions, dropping more than 40 points, which equates to a 1.4% decrease. Currently, the KOSPI index is just below the 2,825-point level, and it is anticipated to open on a lower note again on Friday.
The outlook for Asian markets remains subdued, largely driven by persistent selling pressure in the technology and semiconductor sectors. Both European and U.S. markets have largely trended downward, setting an expected precedent for the Asian markets.
On Thursday, the KOSPI ended slightly lower, affected by losses in the chemical and automobile sectors, while financial and technology stocks showed mixed results.
Specifically, the KOSPI index declined by 18.67 points or 0.67%, closing at 2,824.35. The trading volume was notably high, with 632.9 million shares worth 15.1 trillion won exchanged. Market breadth also reflected the bearish sentiment with 602 decliners against 275 gainers.
Among the active stocks, Shinhan Financial rose by 0.93%, KB Financial gained 0.36%, and Samsung Electronics added 0.23%. Conversely, Hana Financial dipped 0.32%, LG Electronics fell 1.07%, and SK Hynix saw a significant decline of 3.63%. Other notable movers included SK Telecom, which jumped 1.89%, Hyundai Mobis, which tumbled 2.18%, and Hyundai Motor, which stumbled 2.98%.
The poor performance in South Korea’s market echoes the sentiment on Wall Street, where major indices opened slightly higher on Thursday before plunging and remaining deep in negative territory throughout the session.
The Dow Jones Industrial Average dropped by 533.06 points or 1.29%, closing at 34,665.02. The NASDAQ composite fell 125.70 points or 0.70%, ending at 13,871.22, and the S&P 500 sank by 43.68 points or 0.78%, finishing at 4,544.59.
Wall Street's weakness can be attributed in part to concerns about the short-term market outlook, exacerbated by the previous day’s tech sell-off. This was triggered by reports suggesting the Biden administration is considering stricter trade regulations as part of its crackdown on China's semiconductor industry.
In economic news from the U.S., the Labor Department reported an unexpected rise in initial claims for unemployment benefits last week. Additionally, the Federal Reserve Bank of Philadelphia indicated a broader scope of growth in regional manufacturing for July. The Conference Board also reported a slight decline in its leading economic indicators for June.
Crude oil futures saw marginal losses on Thursday, with West Texas Intermediate Crude for August delivery decreasing by $0.03 to settle at $82.82 per barrel. The dip was influenced by concerns over China's oil demand outlook and a recovering U.S. dollar.
