FX.co ★ KOSPI May Test Resistance At 2,800 Points

The South Korean stock market saw renewed support on Wednesday, rebounding from a brief setback on Tuesday. The KOSPI closed above the 2,770 mark and is poised to continue gains on Thursday.

A positive global forecast for interest rates has buoyed the Asian markets, following strong performances in Europe and the U.S. The KOSPI's increase was driven by gains in the technology and chemical sectors, although financial shares showed mixed results.

On Wednesday, the KOSPI index surged 32.50 points, or 1.19%, to close at 2,770.69. Trading volume reached 543.14 million shares, valued at 11.84 trillion won, with 586 stocks advancing and 302 declining.

Key market movers included Shinhan Financial, which rose 0.50%, while KB Financial fell 1.57%. Hana Financial climbed 1.09%, and Samsung Electronics saw a significant increase of 2.48%. Samsung SDI dropped 3.33%, LG Electronics advanced 0.78%, and SK Hynix soared 3.02%. Additional notable movements included Naver, up 0.40%; LG Chem, up 0.16%; Lotte Chemical and S-Oil both up 1.80%; SK Innovation, down 0.10%; POSCO, down 2.23%; SK Telecom, down 0.92%; KEPCO, up 0.71%; Hyundai Mobis, down 0.68%; Hyundai Motor, down 0.40%; and Kia Motors, up 0.45%.

Wall Street's lead was broadly positive, with all major averages posting gains. The Dow advanced 99.46 points, or 0.24%, to finish at 40,842.79. The NASDAQ surged 451.98 points, or 2.64%, to end at 17,599.40, and the S&P 500 gained 85.86 points, or 1.58%, closing at 5,522.30.

This rally was fueled by a positive response to corporate earnings reports from companies such as Advanced Micro Devices (AMD), Starbucks (SBUX), and DuPont (DD). Strength in stocks continued after the Federal Reserve's policy announcement, which left interest rates unchanged. However, the accompanying statement hinted at possible future rate cuts, as Fed Chair Jerome Powell indicated that a rate cut in September could be a possibility if current economic trends persist.

Oil prices saw a sharp rise on Wednesday amid concerns over potential supply disruptions due to escalating Middle East tensions and a larger-than-expected decline in U.S. crude inventories. West Texas Intermediate crude oil futures for September increased by $3.18, or 4.3%, to $77.91 per barrel.

Closer to home, South Korea will release its July import, export, and trade balance figures this morning. Imports are projected to increase by 13.4% year-on-year, rebounding from a 7.5% decline in June. Exports are expected to rise by 19.1%, following a 5.1% gain in the previous month. The trade surplus is estimated at $4.38 billion, down from $7.99 billion in June.