The South Korean stock market has experienced a decline for four consecutive sessions, dropping nearly 250 points or 5.8% during this period. The KOSPI index is now positioned just below the 2,420-point mark, albeit expecting some support on Thursday.
The forecast for Asian markets remains uncertain due to a mixed outlook on interest rates. Both European and U.S. markets showed little movement, with fluctuations in performance, and it's anticipated that Asian markets will mirror this trend.
On Wednesday, the KOSPI faced significant losses, notably within the financial, technology, industrial, and export sectors. The index plummeted by 65.49 points, or 2.64%, concluding at 2,417.08. Trading ranged between 2,415.77 and 2,478.87, with a volume of 605 million shares and a value of 10.8 trillion won. Out of these, 801 stocks declined, while 104 stocks showed gains.
In terms of active stocks: Shinhan Financial rose by 0.36%, while KB Financial dropped by 1.83%. Hana Financial decreased by 1.30%, Samsung Electronics fell 4.53%, and Samsung SDI decreased by 3.40%. LG Electronics saw a slight dip of 0.23%, SK Hynix decreased by 1.56%, and Naver managed a gain of 0.44%. LG Chem lost 5.40%, Lotte Chemical fell by 2.45%, SK Innovation dropped by 2.95%, and POSCO decreased by 5.25%. SK Telecom slipped by 0.70%, though KEPCO experienced a rally of 3.26%. Hyundai Mobis fell by 0.98%, Hyundai Motor decreased by 3.43%, and Kia Motors fell by 1.20%.
Turning to Wall Street, clarity remains elusive as the market started slightly higher on Wednesday but soon steadied to end mixed with little overall change. The Dow Jones Industrial Average gained 47.21 points, or 0.11%, closing at 43,958.19. The NASDAQ fell by 50.66 points, or 0.26%, to finish at 19,230.74, while the S&P 500 gained a modest 1.39 points, or 0.02%, ending at 5,985.38.
The erratic trading activity on Wall Street followed the release of crucial consumer price inflation data, which matched market expectations. Although the data has boosted confidence that the Federal Reserve might continue reducing interest rates next month, lingering inflationary pressures have created uncertainty around future rate cuts.
According to the CME Group's FedWatch Tool, there is currently an 82.3% probability of another quarter-point rate cut in December, but a 60.2% likelihood that rates will remain unchanged in January.
On the topic of oil, prices rose on Wednesday, driven by short covering after recent steep declines. A robust dollar also exerted influence. West Texas Intermediate crude oil futures for December delivery increased by $0.31, or 0.46%, settling at $68.43 per barrel.
