The South Korean stock market experienced a rebound on Monday, breaking a three-day losing streak during which it lost approximately 75 points or 2.9 percent. The KOSPI index is now positioned just below the 2,590 mark, though it risks relinquishing those gains in the next trading session. The outlook for Asian markets is anticipated to be flat to slightly lower, due to the upcoming U.S. presidential election and a key Federal Reserve rate decision this week. Both European and U.S. markets experienced downturns, suggesting a similar start for Asian bourses. On Monday, the KOSPI registered a notable increase, buoyed by advances in technology and industrial stocks, although financials and chemical sectors showed mixed results. The index soared by 46.61 points or 1.83 percent, closing at a high of 2,588.97 after dipping to 2,542.68 earlier in the session, with a trading volume of 367.8 million shares valued at 7.9 trillion won. A total of 619 stocks gained, while 254 declined. Notable movements included Shinhan Financial rising by 0.93 percent, KB Financial falling by 1.20 percent, Hana Financial declining 1.31 percent, while Samsung Electronics climbed 0.69 percent and Samsung SDI rose by 1.81 percent. LG Electronics saw an uptick of 1.65 percent, SK Hynix surged by 6.46 percent, and Naver increased by 3.01 percent. Conversely, Lotte Chemical decreased by 0.97 percent and SK Innovation fell by 0.57 percent. POSCO rallied by 2.37 percent, SK Telecom edged down by 0.18 percent, KEPCO inched up by 0.22 percent, Hyundai Motor gained 1.41 percent, Kia Motors accelerated by 3.29 percent, while Hyundai Mobis remained steady.
Wall Street offered a subdued lead as major indices opened lower on Monday, remaining near the baseline throughout the session and ultimately closing in the red. The Dow Jones Industrial Average fell by 257.59 points or 0.61 percent to settle at 41,794.60. The NASDAQ declined by 59.93 points or 0.33 percent, ending at 18,179.98, while the S&P 500 dropped 16.11 points or 0.28 percent, concluding at 5,712.69. This volatility in trading reflects investors' hesitation to make decisive moves ahead of Tuesday's U.S. elections, where Vice President Kamala Harris faces off against former President Donald Trump. Polls indicate a highly competitive race, suggesting that the election outcome may not be immediately clear.
Market participants are also closely monitoring the Federal Reserve's impending monetary policy announcement on Thursday. There is broad expectation that the Fed will cut interest rates by another 25 basis points, and traders will scrutinize the accompanying statement for indications of potential future rate cuts.
On the commodity front, oil prices saw a substantial uptick on Monday, spurred by OPEC's decision to delay its plan to increase production, alongside escalating concerns over tensions in the Middle East. West Texas Intermediate crude oil futures for December delivery rose by $1.98 or approximately 2.85 percent, to close at $71.47 per barrel, marking the fourth consecutive session of gains.
Domestically, South Korea is slated to release its October consumer price figures later this morning. Analysts predict a monthly increase of 0.2 percent and an annual rise of 1.4 percent, following a 0.1 percent monthly increase and a 1.6 percent annual gain in September.
