The South Korean stock market has seen upward momentum in two out of the three recent trading days following a two-day decline where it slipped more than 40 points, or 1.7%. Currently, the KOSPI index seems to be hovering just under the 2,675-point mark, suggesting stable trading for Tuesday.
Forecasts for Asian markets anticipate a slight pullback in anticipation of vital financial data expected later this week that may influence interest rate prospects. European markets showed mixed results with little change, while the U.S. markets showed minor declines. Asian markets are predicted to follow a middle path.
On Monday, the KOSPI finished significantly higher, bolstered by gains in the financial and industrial sectors, while tech companies showed mixed results. The index rose 31.91 points or 1.21%, ending at 2,674.27 after trading in the range of 2,662.32 to 2,682.00. Share trading volume was 383 million shares valued at 12.2 trillion won, with 442 decliners and 436 gainers.
Notable performers included KB Financial, which surged by 8.66%, and Hana Financial, which climbed 6.36%. Procurement activity saw Shinhan Financial gaining 1.49%, while Samsung Electronics rallied 2.04%. However, LG Electronics slipped by 1.05%.
Sentiment from Wall Street leans on the cautious side as major indexes opened lower on Monday, recovered in the afternoon but fell back into negative territory by the close. The Dow slid by 0.25%, the NASDAQ fell by 0.41%, and the S&P 500 declined by 0.12%.
Investor caution was evident due to several important upcoming data announcements. Focus will be on Federal Reserve Chair Jerome Powell's congressional testimony for insights on interest rate direction. He is scheduled to testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday.
Friday will see the release of the Labor Department's much-awaited February employment report, which could impact interest rate forecasts. Oil future prices dipped on Monday amid concerns about energy demand outlook after OPEC extended its output reductions until the second quarter's end.
Locally, South Korea is set to release its fourth quarter gross domestic product (GDP) figures on Tuesday. GDP growth of 0.6% quarterly and 2.2% annually is expected, following a 0.6% quarterly and 1.1% annual increase in the previous quarter.
