The South Korean stock market, following two consecutive sessions of decline which saw more than a 30-point or 1.1% drop, is now hovering above the 2,640-point level. However, this downturn may come to a halt on Thursday.
Global forecasts suggest a slight increase for Asian markets, bolstered by positive outlooks for interest rates. European and U.S. markets rose and it's predicted that Asian markets will follow suit.
On Wednesday, South Korea's main index, the KOSPI, barely dropped due to losses experienced by technology, chemical and energy stocks. Conversely, automobile sectors experienced a rise and the financials remained indifferent.
That day, the index fell by 7.91 points or 0.30%, ending at 2,641.49 after trading in the range of 2,630.16 and 2,649.78. The trading volume was 364 million shares worth a total of 9.8 trillion won. Decliners outnumbered gainers with 606 to 282, respectively.
In the active market, Shinhan Financial experienced a 3.52% surge, KB Financial gained 0.43%, Hana Financial dropped 0.84%, Samsung Electronics slid 1.09%, Samsung SDI lost 0.55%, LG Electronics rose 1.39%, while SK Hynix fell 1.75%. Other firms fluctuated in performance.
Wall Street reports have been positive as the major averages opened higher on Wednesday but rebounded later in the evening. Specifically, the Dow rose by 75.86 points or 0.20% to end at 38,661.05, while the NASDAQ climbed 91.96 points or 0.58% to close at 16,031.54 and the S&P 500 went up 26.11 points or 0.51% to finish at 5,104.76.
This rebound was influenced by Federal Reserve Chair Jerome Powell's positive congressional testimony. Powell informed the House Financial Services Committee that the Fed is likely to start reducing interest rates at some point this year, subject to attaining more confidence in a sustainable movement of inflation towards 2%.
In other economic news, payroll processor ADP reported slightly lower-than-expected private sector employment growth in the U.S. for February.
Finally, crude oil futures rose on Wednesday after gasoline and distillate stockpiles significantly declined last week. Resultantly, West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25% at $79.13 a barrel.
