FX.co ★ Renewed Support Anticipated For South Korea Stock Market

South Korea's stock market ended a four-day winning streak on Monday, during which it had gained over 55 points or 2 percent. The KOSPI index now sits just below the 2,750-point mark, though it is expected to rebound on Tuesday.

The global outlook for Asian markets remains optimistic, largely due to positive sentiments regarding interest rate prospects. European markets presented mixed results, while U.S. markets showed upward trends, likely influencing Asian markets to follow suit.

On Monday, the KOSPI experienced a modest decline as losses in the financial and chemical sectors were somewhat offset by gains in the automotive sector and mixed results from technology stocks.

The index fell by 14.32 points, or 0.52 percent, to close at 2,744.10. Trading volume reached 545 million shares, valued at 12.2 trillion won. The market saw 522 decliners against 359 gainers.

Key performers included Shinhan Financial, which decreased by 1.60 percent, and KB Financial, which plummeted by 3.21 percent. Hana Financial slipped by 0.17 percent, while Samsung Electronics dropped 1.88 percent. Samsung SDI declined by 0.65 percent, whereas LG Electronics surged by 1.52 percent and SK Hynix gained 0.90 percent. Naver fell by 2.24 percent, LG Chem declined by 1.66 percent, and Lotte Chemical decreased by 2.98 percent. SK Innovations dipped by 1.03 percent, POSCO fell by 2.37 percent, while SK Telecom rose slightly by 0.20 percent. Hyundai Mobis decreased by 1.26 percent, Hyundai Motor soared by 3.92 percent, Kia skyrocketed by 5.22 percent, and KEPCO remained unchanged.

The upbeat performance from Wall Street provides a positive signal. Major U.S. indices opened lower on Monday but quickly recovered to finish in positive territory.

The Dow Jones Industrial Average jumped 188.94 points or 0.49 percent, ending at 38,778.10. The NASDAQ Composite rallied 168.14 points or 0.95 percent to close at 17,857.02. Meanwhile, the S&P 500 gained 41.63 points or 0.77 percent, finishing at 5,473.23.

Investor confidence was bolstered by last week's reassuring inflation data, suggesting lower-than-expected increases. Despite Federal Reserve officials forecasting only one interest rate cut this year following their latest policy meeting, traders are hopeful that continued moderation in inflation could lead to more cuts.

On the economic front, the Federal Reserve Bank of New York reported that manufacturing activity in the state contracted at a slower rate in June.

Oil prices also saw an increase, reaching a six-week high due to optimistic expectations for energy demand. West Texas Intermediate (WTI) crude oil futures for July rose by $1.88, or approximately 1.25 percent, closing at $80.33 per barrel, the highest settlement since April 29.