The South Korean stock market rebounded on Tuesday after a two-day decline, during which it had dropped over 80 points or approximately 3.1 percent. The KOSPI index now sits slightly above the 2,480 mark and could potentially see further gains on Wednesday.
The global outlook for Asian markets appears positive due to diminishing fears of a trade conflict. While European markets displayed mixed results, U.S. markets saw an upward trend, suggesting Asian markets might find a middle ground.
On Tuesday, the KOSPI experienced notable gains, driven by strong performances in financial and technology sectors, although the chemical sector was weaker, and industrial stocks showed mixed results. By the end of the day, the index had risen by 27.74 points, or 1.13 percent, closing at 2,481.69. It fluctuated between 2,471.63 and 2,508.35 during the session. Trading volume reached 473 million shares, valued at 18.8 trillion won, with 690 stocks advancing and 207 declining. Key performers included Shinhan Financial, which gained 1.59 percent, KB Financial up by 2.82 percent, and Hana Financial soaring by 3.71 percent. Samsung Electronics advanced by 3.33 percent, while Samsung SDI declined 1.20 percent. Other notable movements included LG Electronics' slight 0.26 percent rise, SK Hynix adding 0.10 percent, and Naver up by 0.69 percent. However, LG Chem plunged 4.05 percent, Lotte Chemical fell by 1.11 percent, and POSCO Holdings dropped sharply by 4.83 percent.
Wall Street's leading markets provided a positive indication, with major averages, initially mixed, climbing significantly to close solidly higher. The Dow rose 134.13 points, or 0.30 percent, closing at 44,556.04. The NASDAQ surged by 262.06 points, or 1.35 percent, to finish at 19,654.02, and the S&P 500 increased by 43.31 points, or 0.72 percent, ending at 6,037.88.
The gains on Wall Street were partly due to diminished concerns over a global trade war after President Donald Trump agreed to delay the imposition of 25 percent tariffs on imports from Mexico and Canada for a month. Additionally, market sentiment improved following a Labor Department report indicating a significant drop in U.S. job openings in December, which fueled optimism about the future of interest rates ahead of the upcoming Labor Department's monthly job report on Friday.
Oil prices fell on Tuesday as Trump announced a postponement of tariffs on Canadian and Mexican exports to the U.S. West Texas Intermediate Crude oil futures for March concluded at $72.70 per barrel, down by $0.46, or approximately 0.63 percent.
Closer to South Korea, consumer price data for January is set to be released later today. Expectations are for inflation to rise by 0.4 percent on a monthly basis and 2.0 percent on an annual basis, following a 0.4 percent increase monthly and 1.9 percent annually in December.
