Prior to the National Day holiday on Thursday, South Korea's stock market has seen a decline for three consecutive sessions, losing nearly 110 points or 4.2 percent. The KOSPI index now hovers slightly above the 2,560 mark, and it seems likely that this downturn could continue into Friday.
The outlook for Asian markets is relatively stable, with much anticipation surrounding the release of U.S. employment data later today. Both European and U.S. markets experienced declines, and a similar trend is expected as Asian markets open.
On Wednesday, the KOSPI saw a significant drop, primarily driven by losses in technology and industrial sectors, though there was some support from the financial sector.
On that day, the index decreased by 31.58 points or 1.22 percent, closing at 2,561.69, within a trading range of 2,555.46 to 2,591.61. The trading volume consisted of 341.9 million shares valued at 9.38 trillion won, with 705 stocks declining and 177 advancing.
Among active stocks, Shinhan Financial gained 0.72 percent, KB Financial rose by 0.49 percent, and Hana Financial saw a 1.19 percent increase. Conversely, Samsung Electronics fell by 0.33 percent, with Samsung SDI and LG Electronics dropping by 1.85 percent and 1.25 percent, respectively. SK Hynix plummeted 3.15 percent, while Naver, LG Chem, and Lotte Chemical each declined by 0.71 percent, 0.84 percent, and 1.97 percent. Other notable movements included a 1.47 percent decline for S-Oil, a 0.85 percent drop for SK Innovation, and a 2.47 percent fall for POSCO. SK Telecom, KEPCO, Hyundai Mobis, Hyundai Motor, and Kia Motors also incurred losses.
Wall Street provided little encouragement, as major indices opened lower on Thursday and remained in the negative throughout, ending with slight losses.
The Dow Jones Industrial Average fell 184.93 points or 0.44 percent to close at 42,011.59. Meanwhile, the NASDAQ decreased by 6.65 points or 0.04 percent, ending at 17,918.47, and the S&P 500 slipped by 9.60 points or 0.17 percent to finish at 5,699.94.
The indecision on Wall Street is largely attributed to traders hesitating to make major moves ahead of the anticipated monthly jobs report from the U.S. Labor Department to be released on Friday.
This report could influence the economic outlook in the U.S. and shape expectations regarding the Federal Reserve's interest rate policies. Additionally, traders are closely monitoring developments in the Middle East, where escalating conflicts have significantly driven up crude oil prices.
Oil prices surged on Thursday, driven by rising tensions in the Middle East as the conflict between Israel and Iran raised fears of potential supply disruptions. West Texas Intermediate Crude oil futures for November saw a substantial increase, closing up $3.61 or 5.2 percent at $73.71 a barrel.
