The South Korea stock market bounced higher again on Wednesday, one day after halting the modest two-day winning streak in which it had risen almost a dozen points or 0.6 percent. The KOSPI now sits just above the 2,300-point plateau and it’s expected to add to its winnings on Thursday.
The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.
The KOSPI finished sharply higher on Wednesday following gains from the technology stocks and automobile producers, while the chemicals were down on profit taking.
For the day, the index climbed 23.57 points or 1.03 percent to finish at 2,301.56 after trading between 2,288.64 and 2,312.15. Volume was 350 million shares worth 6.66 trillion won. There were 636 gainers and 251 decliners.
Among the actives, Shinhan Financial collected 0.72 percent, while KB Financial fell 0.39 percent, Hana Financial climbed 1.02 percent, Samsung Electronics rallied 2.54 percent, LG Electronics improved 0.60 percent, SK Hynix surged 3.44 percent, Naver perked 0.16 percent, LG Chem stumbled 2.05 percent, Lotte Chemical shed 0.55 percent, S-Oil rose 0.15 percent, SK Innovation retreated 1.47 percent, POSCO tumbled 2.19 percent, SK Telecom was up 0.10 percent, KEPCO dropped 0.89 percent, Hyundai Mobis jumped 1.92 percent, Hyundai Motor added 0.35 percent, Kia Motors gained 0.65 percent and Samsung SDI was unchanged.
The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.
The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.
The strength on Wall Street came as stocks reacted positively to the Federal Reserve’s widely expected decision to leave interest rates unchanged.
The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.
In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.
Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.
Closer to home, South Korea will release October data for consumer prices later this morning, with forecasts suggesting an increase of 0.2 percent on month and 3.7 percent on year. That follows the 0.6 percent monthly increase and the 3.7 percent yearly gain in September.
Market Analysis
South Korea Shares Tipped To Open In The Green
2023-11-02 00:00:05
