On Tuesday, the South Korean stock market broke its two-day decline, during which it had collectively shed nearly 35 points, equating to a 1.4% drop. The KOSPI index is now positioned just below the 2,500 mark and is expected to hover around this level again come Wednesday.
Globally, the outlook for Asian markets is uncertain, with mixed signals around interest rate projections affecting sentiment. Both European and U.S. markets showed little variation, which Asian markets are likely to replicate.
The KOSPI experienced a moderate increase on Tuesday. Gains in the technology, chemical, and industrial sectors were somewhat restrained by the underperformance of financial stocks.
On Tuesday, the index rose by 7.84 points, or 0.31%, concluding at 2,497.40. Trading volume reached 406.24 million shares, valued at 8 trillion won. The session saw 509 stocks rise and 363 decline.
Among notable stock movements, Shinhan Financial fell by 1.00%, KB Financial decreased by 0.56%, and Hana Financial dipped 1.02%. Samsung Electronics also declined, down 0.37%. Meanwhile, Samsung SDI saw a 3.05% increase, SK Hynix edged up 0.36%, LG Chem grew by 1.45%, and Lotte Chemical rose 1.58%. SK Innovation advanced by 1.35%, POSCO increased 0.97%, while SK Telecom fell 0.89%. Hyundai Mobis had a slight decrease of 0.20%, yet Hyundai Motor climbed by 0.91%, and Kia Motors advanced 1.23%. LG Electronics and KEPCO remained static.
Wall Street's performance provided minimal direction, as Tuesday witnessed the main indices opening higher only to lose momentum. The day ended with a mixed closing.
The Dow gained 221.16 points, or 0.52%, finishing at 42,518.28. In contrast, the NASDAQ decreased by 43.71 points, or 0.23%, closing at 19,044.39, while the S&P 500 increased by 6.69 points, or 0.11%, ending at 5,842.91.
Initially, Wall Street saw gains after the Labor Department reported that producer prices in December rose less than analysts had anticipated. This smaller-than-expected rise allayed some concerns regarding inflation and interest rates, although the acceleration in annual growth kept major buying at bay.
Traders possibly held back from making significant decisions ahead of a crucial report on consumer price inflation set for release later today.
Oil prices retreated from five-month highs on Tuesday, as investor attention shifted to the ramifications of the proposed tariffs on imports by Donald Trump. February's West Texas Intermediate crude oil futures closed down by $1.32 or approximately 1.67%, settling at $77.50 per barrel.
In domestic developments, South Korea is scheduled to release December figures for unemployment, imports, exports, and trade balance this morning. Imports are forecasted to grow by 3.3% year-on-year, recovering from a 2.4% decline in November. Exports are anticipated to rise by 6.6% annually, improving from 1.4% the month before. The trade surplus is expected to reach $6.49 billion, a climb from $5.59 billion in the previous month. The jobless rate for December stood at 2.7%.
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