After a three-day winning streak, garnering over 30 points or 1.3%, the South Korean stock market suffered a downturn. The KOSPI market currently stands just below the 2,500-point level and may decline further.
Global predictions for Asian markets remain undetermined ahead of the rate decision and statement from the Federal Open Market Committee (FOMC). While European markets observed an increase and U.S. markets presented mixed results, it is anticipated that Asian markets will follow the U.S. trend.
Tuesday saw a minor decline in KOSPI, influenced by variable performances from financial, technological, chemical, and industrial sectors. The index dropped 1.84 points or 0.07%, finishing at a daily low of 2,498.81 from a maximum of 2,528.54. A total of 476.1 million shares valued 8.63 trillion won were traded with 493 gainers and 385 decliners.
Among the prominent stocks, Shinhan Financial saw a reduction of 1.36%, whereas KB Financial picked up 0.54% and Hana Financial slipped 0.22%. Samsung Electronics experienced a slight dip of 0.13%, while both Hyundai Motor and Kia Motors significantly dropped 2.86% and 1.90% respectively.
The U.S. Wall Street’s impact on the KOSPI was less decisive. While the Dow Index boosted by 133.86 points or 0.35% to close at 38,467.31, the NASDAQ dropped 118.15 points or 0.76% to close at 15,509.90. Further causing uncertainty is the upcoming Federal Reserve's monetary policy announcement. Even though it is expected that interest rates will remain unchanged, the ensuing statement could significantly sway the rate outlook.
In other economic news, an unexpected rise in job openings in December was reported by the Labor Department, while the Conference Board reported a continued uplift in U.S. consumer confidence in January.
Crude oil prices sharply fluctuated on Tuesday, rebalancing the steep fall seen in the prior session following the International Monetary Fund’s announcement of an increased global growth forecast for 2024. Subsequently, West Texas Intermediate for March delivery soared $1.04 or 1.4% to $77.82 a barrel.
Finally, South Korean data for December industrial production and retail sales are due to be reported. Industrial production is projected to rise 0.5% monthly and 6.0% annually following a 3.3% monthly and 5.3% yearly increase in November. Similarly, retail sales are forecasted to increase 0.5% following a 1.0% increment in November.
