The South Korean stock market has experienced a downward trend for six consecutive sessions, losing over 160 points or 6 percent during this period. The KOSPI index is currently positioned slightly above the 2,520 level, although recovery is anticipated on Wednesday.
The global outlook for Asian markets is mixed and relatively stable, pending crucial inflation data expected later this week. While European markets declined, U.S. markets showed mixed results, suggesting that Asian markets might follow suit.
On Tuesday, the KOSPI ended slightly lower, with losses in the technology and industrial sectors partially offset by gains in financial shares. The index dropped 12.50 points, or 0.49 percent, closing at 2,523.43 after fluctuating between 2,522.48 and 2,544.83. Trading volume reached 341.2 million shares, valued at 8.3 trillion won. The day saw 531 decliners against 342 gainers.
Key movers included Shinhan Financial, which rose 0.89 percent, KB Financial, which gained 0.73 percent, and Hana Financial, which added 0.49 percent. Conversely, technology giants like Samsung Electronics fell 1.93 percent, Samsung SDI plummeted 3.20 percent, and LG Electronics slipped 1.16 percent. Other notable movements were Naver climbing 2.58 percent, LG Chem dipping 0.97 percent, and Lotte Chemical declining 2.66 percent. S-Oil edged down 0.17 percent, while SK Innovation saw a 1.48 percent increase and POSCO inched up 0.15 percent. Among automakers, Hyundai Mobis decreased 0.47 percent, Hyundai Motor grew 0.65 percent, and Kia Motors fell 0.60 percent.
Wall Street's lead was cautiously optimistic, with major averages opening mixed on Tuesday and oscillating before settling on opposite sides. The Dow Jones Industrial Average fell 92.63 points, or 0.23 percent, to close at 40,736.96. The NASDAQ rose 141.28 points, or 0.84 percent, ending at 17,025.88, while the S&P 500 gained 24.47 points, or 0.45 percent, finishing at 5,495.52.
The day's volatility was attributed to anticipation of crucial consumer and producer price inflation data due on Wednesday and Thursday, respectively, which could influence interest rate forecasts ahead of the Federal Reserve's monetary policy meeting next week.
It is widely expected that the Federal Reserve will commence lowering interest rates next week, although there is ongoing debate on whether the reduction will be 25 basis points or 50 basis points.
Additionally, crude oil prices weakened on Tuesday, reflecting concerns over the global economic outlook and ahead of the anticipated inflation data. West Texas Intermediate crude for October delivery fell by $2.43, or 3.54 percent, to settle at $66.28 per barrel.
