The South Korean stock market has consistently grown in the last three sessions, adding about 75 points or 2.9 percent. Currently, the KOSPI market lingers just below the 2,650-point threshold. However, a slowdown is expected on Wednesday.
The international forecast predicts a largely negative impact on Asian markets due to increased pessimism surrounding interest rate outlooks. Considering the significant downturn witnessed in the European and U.S. markets, it's probable that Asian markets will also face increased pressure upon opening.
The KOSPI showed considerable improvement upon resuming operations post the Lunar New Year break, owed largely to the growth seen in technology and automobile production stocks. The status of financial stocks remained fluctuated. For the day, the index elevated by 29.32 points or 1.12 percent, ending at 2,649.64 after fluctuating between 2,640.96 and 2,656.87. The volume of shares was 550.46 million worth 12.93 trillion won, with 597 emerging positively and 285 declining.
Leading companies such as Shinhan Financial and KB Financial saw improvements while others like Hana Financial experienced a fall. Samsung and LG Electronics both saw an increase of 1.22 percent each. Other companies like Naver, LG Chem, and Lotte Chemical had mixed results.
Concerning Wall Street, a trend towards consolidation is suggested as leading indexes opened significantly lower and remained so throughout the session. After the Labor Department issued a much-anticipated report revealing a more than expected rise in U.S. consumer prices in January, Wall Street experienced a sell-off. As Federal Reserve officials require increased assurance of slowing inflation before reducing interest rates, this data has further dampened hopes for a near-term rate cut.
As a result of the report, treasury yields escalated, with the benchmark ten-year note achieving its highest level in two months. Additionally, worries about supply due to ongoing Middle Eastern tensions have caused oil prices to rise, with West Texas Intermediate Crude oil futures for March increasing for a seventh consecutive session.
