The South Korean stock market has experienced a downturn for seven consecutive sessions, dropping over 170 points or 6.4%. The KOSPI currently sits just above the 2,510 mark and is anticipated to see some support on Thursday.
Globally, the forecast for Asian markets is positive due to optimism surrounding interest rates. While European markets showed mixed results, U.S. markets were on the rise, suggesting that Asian markets might continue this upward trend.
On Wednesday, the KOSPI ended slightly lower, weighed down by losses in the financial sector, despite gains in the chemicals sector and a mixed performance in technology shares.
The index lost 10.06 points, or 0.40%, closing at 2,513.37 after fluctuating between 2,493.37 and 2,526.13. The trading volume stood at 294.1 million shares, worth 9.4 trillion won, with 525 decliners and 343 gainers.
Notable movements included Shinhan Financial falling 6.18%, KB Financial dropping 6.03%, and Hana Financial declining 6.50%. In contrast, Samsung SDI surged 9.91%, SK Hynix and SK Innovation both rose 1.09%, and POSCO climbed 3.32%. Other significant changes included Samsung Electronics dropping 1.96%, LG Electronics easing 0.10%, and Hyundai Motor falling 3.25%.
Wall Street provided a positive lead, with major averages overcoming early weaknesses to end near session highs. The Dow Jones increased by 124.75 points or 0.31%, closing at 40,861.71. The NASDAQ surged by 369.65 points or 2.17%, finishing at 17,395.53, and the S&P 500 rallied by 58.61 points or 1.07%, ending at 5,554.13.
An initial sell-off in U.S. markets followed the Labor Department’s consumer price inflation report for August, which showed a rise in consumer prices in line with expectations, but core consumer prices slightly exceeded projections. This prompted concerns that the Federal Reserve might not cut interest rates by 50 basis points next week. However, selling pressure eased significantly as the Fed is still anticipated to lower rates in the upcoming months.
Crude oil prices surged on Wednesday, rebounding from a three-year low in the previous session due to fears of extended production shutdowns in the offshore oil sector caused by Hurricane Francine. West Texas Intermediate Crude oil futures for October rose by $1.56 or 2.37%, ending at $67.31 per barrel.
