FX.co ★ KOSPI Extends Gains on Wall Street Strength, Policy Signals

The KOSPI index rose by 0.61% to approximately 3,239 on Tuesday, marking its highest point in over five weeks. This increase represents a continuation of gains for the sixth consecutive session, reflecting the positive momentum from Wall Street's performance on the previous night. Investor confidence was bolstered by weaker-than-anticipated U.S. jobs data for August, which heightened expectations of a likely Federal Reserve interest rate reduction in September. Enhancing the optimistic outlook, Finance Minister Koo Yun-cheol mentioned on Monday that the government might reconsider its earlier proposal regarding capital gains taxation for major shareholders. The initial proposal aimed to reduce the taxable equity holding threshold from KRW 5 billion ($3.61 million) to KRW 1 billion, potentially broadening the tax base significantly. In the corporate realm, technology and financial stocks led the advances, with significant gains seen in SK hynix (1.99%), Samsung Electronics (0.86%), KB Financial Group (0.84%), and Shinhan Financial Group (0.62%).