The South Korea stock market has moved lower in back-to-back sessions, slipping just 3 points or 0.1 percent in that span. The KOSPI market now rests just beneath the 2,500-point plateau and it may take further damage again on Thursday.
The global forecast for the Asian markets suggests consolidation on a deteriorating outlook for interest rate cuts. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.
The KOSPI finished slightly lower on Wednesday as losses from the technology stocks were offset by gains from the financials and automobile producers.
For the day, the index eased 1.72 points or 0.07 percent to finish at 2,497.09 after trading between 2,486.97 and 2,502.45. Volume was 443.1 million shares worth 8.69 trillion won. There were 525 decliners and 350 gainers.
Among the actives, Shinhan Financial spiked 2.25 percent, while KB Financial collected 1.25 percent, Hana Financial soared 3.94 percent, Samsung Electronics tumbled 2.15 percent, Samsung SDI lost 0.53 percent, LG Electronics skidded 1.06 percent, SK Hynix retreated 1.61 percent, Naver plunged 4.30 percent, LG Chem rallied 1.88 percent, Lotte Chemical sank 0.68 percent, S-Oil jumped 1.94 percent, SK Innovation perked 0.26 percent, POSCO shed 0.58 percent, SK Telecom rose 0.40 percent, KEPCO advanced 0.87 percent, Hyundai Mobis climbed 1.69 percent, Hyundai Motor accelerated 2.42 percent and Kia Motors skyrocketed 5.00 percent.
The lead from Wall Street is broadly negative as the major averages opened slightly lower but accelerated to the downside after the Federal Reserve’s rate decision and statement.
The Dow stumbled 317.01 points or 0.82 percent to finish at 38,150.30, while the NASDAQ plummeted 345.88 points or 2.23 percent to close at 15,164.01 and the S&P 500 slumped 79.32 points or 1.61 percent to end at 4,845.65.
In the Fed’s highly anticipated monetary policy announcement, it maintained the target range for the federal funds rate at 5.25 to 5.50 percent to support maximum employment and inflation at the rate of 2 percent.
However, the Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent – triggering a wave of selling in the markets.
In U.S. economic news, payroll processor ADP said private sector job growth in the U.S. slowed more than expected in January.
Oil prices slumped Wednesday, weighed down by data showing an unexpected jump in U.S. crude inventories last week, and concerns about the outlook for demand after data showed another contraction in Chinese manufacturing activity. West Texas Intermediate Crude oil futures for March fell $1.97 or 2.5 percent at $75.85 a barrel.
Market Analysis
South Korea Stock Market Tipped To Open Under Pressure
2024-01-31 23:00:38
