South Korea’s stock market is on the rise for the second consecutive day, eyeing further gains ahead of the Federal Open Market Committee (FOMC) meeting. The KOSPI index has climbed by almost 30 points or 1.1 percent, hovering just below the 2,630-point mark, with expectations of another uptick on Tuesday.
The global forecast for the Asian markets is cautiously optimistic as investors await the FOMC’s interest rate decision on Wednesday. The European and U.S. markets have shown mostly positive trends, and Asian bourses are likely to follow suit.
On Monday, the KOSPI closed slightly higher, with gains from steelmakers and energy companies offsetting weaknesses among financials and automobile producers. The index added 18.77 points or 0.72 percent to conclude at 2,628.53.
Market volume reached 522.67 million shares, valued at 18.81 trillion won. There were 790 decliners and 118 gainers.
Shinhan Financial and KB Financial experienced declines of 1.91 percent and 2.06 percent, respectively, while Hana Financial saw a drop of 1.66 percent. Samsung Electronics rose by 0.14 percent, Samsung SDI surged by 3.79 percent, and LG Electronics lost 0.66 percent. SK Hynix declined by 0.96 percent, Naver retreated by 1.46 percent, and LG Chem rallied by 2.74 percent.
Meanwhile, Lotte Chemical eased by 0.07 percent, S-Oil spiked 2.40 percent, SK Innovation witnessed a substantial surge of 11.21 percent, and POSCO skyrocketed by 16.52 percent. SK Telecom saw a slight decline of 0.33 percent, KEPCO tumbled by 3.04 percent, and Hyundai Mobis and Hyundai Motor shed 1.23 percent and 0.40 percent, respectively. Kia Motors skidded by 1.18 percent.
Wall Street also showed mild gains, with the Dow Jones Industrial Average climbing 183.55 points or 0.52 percent to close at 35,411.24. The NASDAQ rose by 26.06 points or 0.19 percent to end at 14,058.87, while the S&P 500 added 18.30 points or 0.40 percent, reaching 4,554.64.
The recent upward momentum has propelled the major averages to their highest levels in over a year, contributing to an 11-day winning streak for the Dow, its longest since February 2017.
Trading activity remained relatively subdued as investors await the Federal Reserve’s monetary policy decision, expected to include a 25 basis point increase in interest rates. Traders are eager for any clues about the future outlook for rates in the accompanying statement.
Crude oil futures settled higher, boosted by increased gasoline demand and export cuts from Saudi Arabia and Russia. The West Texas Intermediate Crude oil futures for September closed at $78.74 per barrel, up $1.67 or 2.2 percent.
Looking ahead, South Korea is set to release preliminary Q2 gross domestic product figures later in the day. Analysts expect a quarterly increase of 0.5 percent and an annual rise of 0.8 percent, following a 0.3 percent quarterly increase and a 0.9 percent annual rise in the previous three months.
In summary, South Korea’s stock market continues to rise, buoyed by positive global market sentiment ahead of the FOMC meeting. Despite some weaknesses among financials and automobile producers, gains from steelmakers and energy companies have helped sustain the upward trend. As investors eagerly await the Fed’s decision and statement on interest rates, the market remains cautiously optimistic. Additionally, crude oil futures have seen an uptick, and South Korea’s upcoming GDP figures will provide further insight into the country’s economic performance.
