The South Korean stock market has enjoyed consecutive days of gains, amassing over 25 points or 0.9%. The KOSPI index now sits just below the 2,730-point mark and is anticipated to see a modest rise on Thursday.
The outlook for Asian markets remains optimistic, influenced by the Federal Open Market Committee's (FOMC) recent rate decision. European markets were trending upward, while U.S. markets showed mixed results, suggesting that Asian markets might land somewhere in between.
On Wednesday, the KOSPI made moderate gains supported by financial shares, technology stocks, and energy companies. For the session, the index increased by 22.85 points or 0.84%, ending at 2,728.17. Trading volume was substantial at 499.4 million shares, valued at 11.5 trillion won. The session saw 502 stocks advance and 372 decline.
Among the active stocks, Shinhan Financial surged by 3.46%, KB Financial rose by 0.89%, and Hana Financial gained 1.01%. In the technology sector, Samsung Electronics increased by 1.73%, Samsung SDI edged up by 0.25%, and LG Electronics advanced by 2.44%. SK Hynix climbed 1.18%. Conversely, Naver fell by 1.06%, and LG Chem declined by 0.93%. Lotte Chemical saw a modest increase of 0.33%, S-Oil went up by 0.90%, and SK Innovation added 0.58%. POSCO dipped by 0.79%, while SK Telecom rose by 0.39%, and KEPCO improved by 0.15%. Among automakers, Hyundai Mobis gained 0.91%, Hyundai Motor decreased by 0.37%, and Kia Motors rose by 0.41%.
Wall Street's lead is cautiously optimistic. Although the major indices opened higher on Wednesday, the Dow lost its gains, closing 35.21 points down or 0.09% at 38,712.21. Meanwhile, the NASDAQ surged by 264.89 points or 1.53% to finish at 17,608.44, and the S&P 500 increased by 45.71 points or 0.85% to close at 5,421.03.
The early rally in U.S. markets was driven by a Labor Department report indicating that consumer prices remained unchanged in May, fueling optimism regarding interest rates. However, the Federal Reserve's policy announcement later tempered enthusiasm as officials now anticipate only one interest rate cut this year.
The Fed noted modest progress towards its inflation target in recent months but emphasized that greater confidence in the inflation outlook is needed before considering rate reductions.
On the commodity front, oil prices rose on Wednesday amid hopes of increased demand and tighter supply conditions later in the year, aided by a weakening dollar. West Texas Intermediate Crude for July delivery advanced by $0.60, settling at $78.50 a barrel.
