The South Korean stock market ended its three-day winning spree on Wednesday, where it had gained a modest 8 points, or 0.3 percent. The KOSPI index currently stands just above the 2,700-point mark, and it's speculated to rise slightly on Thursday.
According to global forecasts, Asian markets are likely to experience slight upward trends, amidst varying opinions regarding interest rate prospects. While European markets showed positivity, U.S. markets displayed a mix of minimal change. It is expected the Asian markets will bridge this gap.
On Wednesday, KOSPI saw a significant drop with sectors such as financials, technology, and industrial stocks particularly affected.
In terms of specifics, the index fell by 46.19 points or 1.68 percent, coming to rest at 2,706.97. The day saw a voluminous trade of 628.41 million shares, valued at 12.74 trillion won, with 632 declines as compared to 246 gains.
Notable activity included major firms such as Shinhan Financial and KB Financial falling by 3.12 percent and 2.32 percent, respectively. Hana Financial saw a decline of 1.59 percent, Samsung Electronics stumbled by 1.06 percent, and Samsung SDI plummeted by 5.52 percent. LG Electronics and SK Hynix also recorded losses, and Posco receded by 2.69 percent. Conversely, web portal giant Naver managed to achieve a 0.73 percent gain.
The U.S. market presented a vague picture as major indices opened slightly lowered on Wednesday, only to close with mixed results.
The Dow index slipped by 43.10 points or 0.11 percent, concluding at 39,127.14, while NASDAQ and the S&P 500 grew by 0.23 percent and 0.11 percent, respectively.
Initial market fluctuations were influenced by the unexpected slowing of U.S. service sector growth in March, according to a report from the Institute for Supply Management. Moreover, strong private-sector job growth in the U.S for March, as reported by payroll processor ADP, fueled concerns about Federal Reserve's stance on interest rates. Federal Reserve Chair, Jerome Powell, emphasized that the central bank is not planning an expedited reduction in interest rates.
Lastly, oil prices also saw an increase, with West Texas Intermediate Crude futures for May ending higher by $0.28 or 0.33 percent, at $85.43 a barrel, following OPEC's decision to maintain its current production policy.
