The South Korean stock market continues to experience instability, fluctuating between gains and losses over the previous four sessions. This instability follows a two-day decline that saw it tumble by more than 40 points, or 1.7 percent. Currently, the KOSPI is hovering just below the 2,650-point mark and is expected to face further pressure in the coming week.
Global forecasts indicate that Asian markets could continue to consolidate owing to anxieties over the future direction of interest rates. Although European markets have remained stable, albeit mixed, U.S. markets have experienced significant dips, hinting that Asian markets are likely to open in the red.
On Tuesday, the KOSPI registered modest losses influenced by faltering technology, chemical, energy, and industrial sectors. The index fell by 24.87 points or 0.93 percent, closing at 2,649.40 as volume registered at 447 million shares valued at 11.9 trillion won. The tally for declining and gaining shares stood at 606 and 282, respectively.
Major players in the market such as Shinhan Financial noted a 0.34 percent dip while KB Financial recorded a 0.72 percent gain. Samsung Electronics and Naver faced significant losses, retreating by 1.60 percent and 1.72 percent, respectively. Similarly, Hyundai Motor slipped by a notable 2.54 percent while Hyundai Mobis enjoyed a 0.40 percent rise.
U.S. market trends indicate a largely negative trajectory. Major averages such as the Dow and NASDAQ experienced a significant drop, closing at their lowest. The plunge in the market values was spurred by traders cashing in on recent upswings in the market. These upswings had previously taken the S&P 500 and the NASDAQ to record closing highs the previous week.
Markets also faced the burden of uncertainty regarding interest rates, ahead of Federal Reserve Chair, Jerome Powell's congressional testimonies. As per U.S. economic reports, growth in the U.S. service sector slowed more than anticipated in February, and new orders for U.S. manufactured goods saw a drop in January.
Tuesday's crude oil futures also saw a drop as demand outlook concerns led to a decrease for the second consecutive session. West Texas Intermediate Crude oil futures for April settled down at $78.15 per barrel, a drop of $0.59.
