In recent trading sessions, the South Korean stock market has shown a positive trend, gaining over 80 points or 3.3 percent. The KOSPI index is currently positioned just above the 2,440 mark, with expectations for further gains into Thursday.
The global economic forecast is optimistic, bolstered by improved sentiment regarding interest rate prospects. European markets experienced an upswing, while U.S. exchanges were predominantly positive, setting the stage for Asian markets to potentially follow this trajectory.
On Wednesday, the KOSPI recorded strong performance due to favorable movements in financial and industrial sectors, although technology and chemical stocks showed mixed results. The index increased by 24.67 points or 1.02 percent, closing at 2,442.51, fluctuating between 2,411.38 and 2,443.34. Trading volume was reported at 607 million shares, valued at 7.53 trillion won, with 808 stocks rising and 102 declining.
In active trading, Shinhan Financial gained 0.90 percent, KB Financial surged 2.52 percent, and Hana Financial increased by 3.32 percent. Conversely, Samsung SDI dropped by 1.58 percent, while LG Electronics rose by 1.90 percent. SK Hynix improved by 0.82 percent, Naver advanced 4.31 percent, and LG Chem fell 2.05 percent. Lotte Chemical added 0.80 percent, SK Innovation saw an uptick of 0.25 percent, POSCO Holdings increased 0.55 percent, SK Telecom climbed 0.53 percent, and KEPCO had a minor rise of 0.23 percent. Hyundai Mobis rose by 0.40 percent, Hyundai Motor decreased by 0.71 percent, Kia Motors surged 0.73 percent, and Samsung Electronics remained unchanged.
The outlook from Wall Street presented mixed to positive results, with major averages starting in the green on Wednesday, although the Dow ultimately retreated. The Dow Jones Industrial Average fell by 99.27 points or 0.22 percent to end at 44,148.56. The NASDAQ Composite increased significantly by 347.65 points or 1.77 percent, reaching a record close of 20,034.89, and the S&P 500 climbed 49.28 points or 0.82 percent to settle at 6,084.19.
The broader market strength was influenced by the release of inflation data that met expectations, reinforcing confidence that the Federal Reserve might proceed with another quarter-point interest rate cut next week. CME Group's FedWatch Tool indicates a 98.6 percent probability of a 25 basis point rate cut by the Fed at the December meeting.
Oil futures closed higher on Wednesday amid potential European Union sanctions on Russia, anticipated increased demand from China, and data reflecting a rise in gasoline stockpiles. West Texas Intermediate crude oil futures for January settled up by $1.70 or 2.5 percent, at $70.29 per barrel.
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