The South Korea stock market had a marginal slump in two of the last three trading days following a three-day winning streak that saw the KOSPI surging nearly 60 points, or 2.2 percent. The index is currently just above the 2,655-point mark, but a rebound is expected on Wednesday.
The prospects for Asian markets look promising due to a positive global forecast before the Federal Reserve's policy announcement. Both the European and U.S. markets showed growth, signaling a likely positive trend for the Asian markets.
On Tuesday, the KOSPI wrapped up the day significantly lower, attributed to the decline in financial shares, technology stocks, chemical firms, and industrial sectors.
In trading, the KOSPI plunged by 29.67 points or 1.10 percent to close on 2,656.17. The market saw a trading volume of 683.5 million shares valued at 10.5 trillion won, with 603 stocks on a downtrend and 276 on the rise.
Among active stocks, Shinhan Financial lost 2.25 percent, KB Financial dropped 2.55 percent, and Hana Financial declined by 0.97 percent. Other notable changes included Samsung SDI gaining 1.58 percent and LG electronics enjoying a marginal growth of 0.1 percent. However, SK Hynix fell by 2.5 percent and Naver by 0.81 percent.
Despite high expectations from Wall Street regarding the Federal Reserve's policy announcement, the state of play suggests that interest rates will remain unchanged. However, the proceeding statement from the central bank could significantly alter this forecast.
Elsewhere, in the U.S, the Commerce Department observed a significant recovery in new residential construction in February, with building permits also indicating an upward trend.
In the context of the oil market, West Texas Intermediate Crude oil futures for April ascended by $0.75 to $83.47 a barrel on Tuesday. This gain is the second successive one as traders evaluate the effects of Ukrainian attacks on Russian refineries.
