Ahead of South Korea's Labor Day holiday on Wednesday, the nation's stock market experienced a rise for three successive sessions, accumulating almost 65 points or a 2.5 percent increase. Despite this upward trend, the KOSPI is currently just above the 2,690-point mark and could potentially experience a slowdown in rallying as Thursday approaches.
Overall, the international forecast for the Asian markets appears unstable following the recent decision and statement regarding rates by the Federal Reserve. European markets have seen a decline while U.S. markets show mixed results. As a result, Asian markets are expected to exhibit a comparable trend.
KOSPI's Tuesday performance ended on a slightly higher note due to mixed results from technology and chemical companies. However, financial and industrial sectors underperformed. The day ended with KOSPI adding 4.62 points or a 0.17 percent increase, closing at 2,692.06 after fluctuations between 2,687.29 and 2,710.23. Around 450 million shares, worth 11.1 trillion won, were traded, with 439 shares increasing and 408 shares declining in value.
Active shares showed varied movements, with Shinhan Financial down by 0.43 percent and Samsung Electronics up by 1.04 percent. Further, Samsung SDI surged 3.09 percent, while Hana Financial fell 1.68 percent.
Wall Street's recent activity provides little certainty as major averages remained flat until a brief surge following the Federal Reserve's announcement. This was short-lived as markets ended with mixed results. The Dow gained 87.37 points (0.23 percent), settling at 37,903.29, whereas the NASDAQ and the S&P 500 concluded with slight lows.
This fluctuation can be attributed to the Federal Reserve's decision to maintain interest rates citing a lack of progress towards their 2 percent inflation objective. They also emphasised the need for greater confidence that inflation is sustainably moving towards 2 percent before considering an interest rate cut.
In other economic news, a report from payroll processor ADP revealed an unexpected increase in private sector employment for April. Unfortunately, oil prices hit a seven-week low as U.S. crude inventories unexpectedly rose last week. West Texas Intermediate Crude oil futures fell by $2.93, settling at $79.00 a barrel marking the lowest since March 12.
