FX.co ★ South Korea Shares Tipped To Open In The Green

The South Korean stock market concluded its two-day rally on Monday, having gained over 60 points or 2.3 percent over that period. The KOSPI index now sits slightly above the 2,700 mark, with expectations of a recovery on Tuesday.

Globally, the outlook for Asian markets appears neutral with a hint of positive movement ahead of the Federal Open Market Committee (FOMC) statement on Wednesday. While European markets experienced a downturn, U.S. markets saw gains, suggesting a modest rise in Asian stocks.

On Monday, the KOSPI saw a slight decline, influenced by losses across the financial, technology, and chemical sectors. The index dropped by 21.50 points or 0.79 percent, closing at 2,701.17. Trading volume reached 499.3 million shares valued at 11.16 trillion won, with 499 stocks declining and 381 advancing.

Key movements included Shinhan Financial falling by 1.91 percent, KB Financial by 1.51 percent, and Hana Financial by 1.16 percent. Technology giant Samsung Electronics decreased by 2.07 percent, while Samsung SDI declined by 1.50 percent. LG Electronics saw a minor dip of 0.10 percent, and SK Hynix edged up by 0.24 percent. Naver plunged by 2.68 percent, LG Chem dropped by 3.01 percent, and Lotte Chemical slumped by 1.52 percent. Additionally, S-Oil lost 0.59 percent, SK Innovation retreated by 2.41 percent, and POSCO fell by 2.46 percent. SK Telecom decreased by 0.96 percent, KEPCO by 1.15 percent, and Hyundai Mobis by 0.67 percent. Conversely, Hyundai Motor advanced by 0.94 percent, and Kia Motors rose by 0.25 percent.

Wall Street's lead points to a slight upward trend, as major indices opened lower on Monday but gradually moved into positive territory. The Dow Jones Industrial Average gained 69.05 points or 0.18 percent, closing at 38,868.04. The NASDAQ rose by 51.90 points or 0.35 percent, ending at 17,192.53, while the S&P 500 increased by 13.80 points or 0.26 percent, finishing at 5,360.79.

Traders appeared hesitant to make significant moves ahead of key events this week, including the Federal Reserve's monetary policy meeting. The Fed is expected to announce its latest policy decision on Wednesday, with an unchanged interest rate anticipated.

Given the likelihood of an unaltered rate, market participants are expected to focus on Fed officials' economic and rate projections. Ahead of the Fed's announcement, the Labor Department is set to release the consumer price inflation report for May.

Crude oil prices surged on Monday amid positive energy demand forecasts. West Texas Intermediate Crude oil futures for July climbed by $2.21 or approximately 2.9 percent, closing at $77.74 per barrel.

Domestically, South Korea is set to release its April current account figures later today. In March, the current account surplus stood at $6.93 billion.