South Korea's stock market concluded a two-day winning streak on Monday, during which it gained roughly 40 points or 1.6%. Currently, the KOSPI index is situated just below the 2,660-point mark, and it may continue to drop on Tuesday.
Predictions for the Asian markets are somewhat mixed, as a lowering is anticipated prior to the release of inflation data which may influence interest rate projections. A similar trend was observed in the European and U.S. markets, which were relatively unaltered, and it is expected that the Asian markets will follow this pattern.
On Monday, the KOSPI index concluded with a minor drop, following profit amassing amongst financial, technological, and industrial stocks.
The KOSPI index fell by 20.51 points or 0.77%, ending at 2,659.84 after fluctuations between 2,658.74 and 2,677.21. The total worth of the 383 million traded shares was 8.69 trillion won. There were more decliners than gainers, with 517 of the former and 353 of the latter.
Concerning the active market participants, Shinhan Financial experienced a 0.65% drop, KB Financial a 0.28% loss, Hana Financial a 0.34% descending, while other major corporates like Samsung Electronics, Samsung SDI, LG Electronics, SK Hynix, LG Chem also saw a downturn. Only a few companies like Naver and S-Oil saw an upward trend. Hyundai Motor and Kia Motors saw a steep decline.
Following the Wall Street example, the major averages opened lower on Monday and stayed on that trajectory for the majority of the day. However, in the late hours of the day, the Dow slightly rose, finishing marginally higher.
Increasing uncertainty regarding interest rates was seen ahead of the release of key inflation data. The US Labor Department is due to release information on consumer price inflation for February, which could significantly influence the future rates. Federal Reserve officials stated that they need to have "greater confidence" in the slowing of inflation before they consider reducing rates.
Whilst it is widely anticipated that the Federal Reserve will maintain the status quo at its monetary policy meeting next week, this data could alter expectations regarding future cuts.
Oil futures finished lower on Monday attributable to concerns regarding China's demand outlook and caution ahead of the critical U.S. consumer price inflation data. For the third successive session, West Texas Intermediate Crude oil futures for April decreased, ending $0.08 or 0.1% lower at $77.93 a barrel.
