FX.co ★ KOSPI Expected To Return To The Upside On Thursday

Heading into Hangul Day on Wednesday, South Korea's stock market concluded its two-day climb, which had seen a gain of almost 50 points, equating to a 2 percent rise. The KOSPI index, now slightly below the 2,600 mark, is expected to rebound on Thursday.

Globally, the outlook for Asian markets is optimistic, driven by positive sentiments concerning interest rates. Both European and U.S. markets experienced gains, with Asian markets expected to follow this upward trend.

On Tuesday, the KOSPI closed slightly lower, as industrial and technology stocks fell, while financial stocks showed mixed results. The index dropped 16.02 points, or 0.61 percent, ending the day at 2,594.36, fluctuating between 2,581.79 and 2,601.96. Trading volume was 313 million shares, valued at 8.98 trillion won, with 569 stocks declining and 305 advancing.

In active trading, Shinhan Financial decreased by 0.18 percent, KB Financial rose by 2.41 percent, and Hana Financial dropped by 0.49 percent. Samsung Electronics fell 1.15 percent, while Samsung SDI increased by 0.95 percent. LG Electronics saw a significant drop of 5.50 percent, SK Hynix declined by 3.73 percent, and Naver inched up by 0.06 percent. LG Chem gained 0.56 percent, whereas Lotte Chemical fell sharply by 4.79 percent. SK Innovation edged up by 0.08 percent, POSCO decreased by 0.79 percent, and SK Telecom plummeted 3.36 percent. KEPCO slightly dipped by 0.15 percent, Hyundai Mobis increased by 0.46 percent, Hyundai Motor slid by 0.40 percent, and Kia Motors dropped by 0.80 percent.

Wall Street's lead was positive, with major indices starting flat on Wednesday but rising steadily throughout the day to close near session highs. The Dow Jones jumped 431.63 points, or 1.03 percent, finishing at a record high of 42,512.00. The NASDAQ rose by 108.70 points, or 0.60 percent, to close at 18,291.62, and the S&P 500 gained 40.91 points, or 0.71 percent, ending at a record 5,792.04.

The buoyancy stemmed from the release of the Federal Reserve's September meeting minutes, revealing that most members favored a larger rate cut, boosting hopes for further reductions.

In economic developments, the Commerce Department reported that the U.S. trade deficit shrank to $70.4 billion in August, down from a revised $78.9 billion in July. Economists had predicted a decrease to $70.6 billion from the initially reported $78.8 billion in the previous month.

Meanwhile, crude oil prices dipped on Wednesday due to a significant rise in crude inventories, which overshadowed the potential supply disruptions caused by Hurricane Milton and tensions in the Middle East. West Texas Intermediate Crude oil futures for November decreased by $0.33, or 0.45 percent, settling at $73.24 per barrel.