The South Korean stock market has seen gains in two out of the last three trading sessions following a previous three-day decline where it dropped nearly 40 points, or 1.6 percent. The KOSPI index is currently positioned just below the 2,600 mark, but indications suggest a potential downturn on Thursday.
The global forecast presents a negative outlook for Asian markets, driven by increasing treasury yields and growing pessimism regarding interest rate futures. Following trends in European and U.S. markets, Asian trading venues are expected to experience declines.
On Wednesday, the KOSPI closed significantly higher, buoyed by advancements in financial sectors, technology stocks, and steel companies. The index rose by 28.92 points, an increase of 1.12 percent, to conclude at 2,599.62. Trading volume reached 345.96 million shares, equating to a value of 9.25 trillion won. The market registered 448 gainers against 408 decliners.
Noteworthy performers included Shinhan Financial with a 0.54 percent gain, and KB Financial, which rose by 0.21 percent. In contrast, Hana Financial declined by 0.31 percent. Samsung Electronics experienced a significant uplift, surging 2.43 percent, while Samsung SDI climbed 2.16 percent. LG Electronics saw a 3.32 percent rise, SK Hynix jumped 4.37 percent, Naver increased by 0.76 percent, LG Chem expanded by 2.04 percent, Lotte Chemical gained 1.53 percent, SK Innovation advanced 3.38 percent, and POSCO rose 3.17 percent. Conversely, SK Telecom fell by 1.39 percent, KEPCO improved 0.69 percent, Hyundai Mobis declined 0.40 percent, Hyundai Motor increased 2.77 percent, and Kia Motors edged up by 0.54 percent.
Wall Street offered a bleak precedent as major indices started lower on Wednesday and stayed in negative territory all day, although they did recover somewhat from their lowest points. The Dow Jones Industrial Average dropped 409.94 points, or 0.96 percent, to 42,514.95. Meanwhile, the NASDAQ declined by 296.47 points, or 1.60 percent, to 18,276.47, and the S&P 500 fell by 53.78 points, or 0.92 percent, closing at 5,797.42.
The downturn in U.S. markets was primarily due to a continual rise in treasury yields, which have climbed sharply recently. The yield on the benchmark ten-year note has hit its peak in nearly three months amid concerns the Federal Reserve may not lower interest rates as swiftly as once anticipated.
While there is still broad expectation that the Federal Reserve will reduce interest rates by a quarter-point next month, doubts are growing about a potential subsequent cut in December.
Oil prices declined on Wednesday, affected by reports of a larger-than-expected increase in U.S. crude oil inventories last week, coupled with the pressure of a stronger dollar. The futures for West Texas Intermediate crude oil for December decreased by $0.97, or 1.35 percent, settling at $70.77 per barrel.
In domestic economic news, South Korea is set to unveil preliminary data for its Q3 gross domestic product later this morning. Expectations are for GDP to rise 0.5 percent quarter-on-quarter and 2.0 percent year-on-year, following a contraction of 0.2 percent quarterly and a 2.3 percent year-on-year growth in the preceding three months.
