FX.co ★ Win Streak May Continue For South Korea

The South Korean stock market has experienced upward momentum over the past two consecutive sessions, accumulating more than 10 points or a 0.3 percent gain. The KOSPI is now approaching the 2,870-point mark and is poised to extend its gains on Thursday.

The overall forecast for Asian markets is optimistic, driven by advances in technology shares ahead of key inflation data. Both European and U.S. markets have shown positive movements, suggesting that Asian markets may follow suit.

On Wednesday, the KOSPI finished marginally higher, supported by mixed performances in technology stocks but weighed down by declines in financial and chemical sectors. The index rose by 0.61 points or 0.02 percent to close at 2,867.99, with a trading volume of 459 million shares totaling 11.2 trillion won. The market saw 432 decliners compared to 423 gainers.

Key performers included Shinhan Financial, which fell by 0.97 percent, KB Financial, which dropped 1.88 percent, and Hana Financial, which declined 1.12 percent. Samsung SDI plummeted by 2.48 percent, while LG Electronics increased by 0.64 percent, SK Hynix edged up by 0.21 percent, and Naver surged by 3.98 percent. Conversely, LG Chem declined by 1.79 percent, Lotte Chemical dropped 2.39 percent, and SK Innovation fell by 3.73 percent. POSCO slumped by 1.21 percent, SK Telecom decreased by 0.19 percent, KEPCO sank by 0.81 percent, and Kia Motors lost 0.41 percent. Samsung Electronics, S-Oil, Hyundai Motor, and Hyundai Mobis remained unchanged.

Wall Street provided a largely positive lead, with major averages opening flat on Wednesday but rising steadily throughout the day to close near session highs. The Dow climbed by 429.39 points or 1.09 percent to finish at 39,721.36, while the NASDAQ rallied by 218.16 points or 1.18 percent to end at a record 18,647.45. The S&P 500 also set a record, jumping by 56.93 points or 1.02 percent to close at 5,633.91. The rally was driven by strength in technology stocks, as evidenced by the significant advance of the tech-heavy NASDAQ.

Stocks may have also been buoyed by optimism regarding the outlook for interest rates, ahead of the release of closely watched consumer price inflation data. During his congressional testimony, Federal Reserve Chair Jerome Powell indicated that further positive data would bolster the central bank's confidence that inflation is moving sustainably towards its 2 percent target, potentially leading to an interest rate cut.

Meanwhile, oil futures settled higher on Wednesday following data that revealed a larger-than-expected decrease in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for August ended higher by $0.69 at $82.10 per barrel.