FX.co ★ South Korea Shares May Run Out Of Steam On Wednesday

The South Korean stock market has experienced gains over the past two sessions, amassing over 35 points or approximately 1.3 percent cumulatively. As a result, the KOSPI index is now positioned just above the 2,630 mark. However, this upward momentum may face a pause on Wednesday.

The global outlook for Asian markets remains pessimistic due to a mix of lackluster economic data and earnings reports, coupled with potential profit-taking. With European and U.S. markets recently down, Asian markets are likely to mirror this trend.

On Tuesday, the KOSPI ended with a modest increase, reflecting varied performances across sectors including financial services, technology, and industrial stocks. The index gained 10.16 points, or 0.39 percent, to close at 2,633.45, having fluctuated between 2,615.47 and 2,635.32 throughout the session. Trading volume reached 430 million shares, valued at 9.72 trillion won, with 445 stocks declining and 418 advancing.

Key movers included Shinhan Financial, which decreased by 0.52 percent, and KB Financial, which fell 1.65 percent. Conversely, Hana Financial rose by 0.94 percent, while technology giant Samsung Electronics edged up 0.33 percent. Samsung SDI experienced a 2.23 percent drop, and LG Electronics slipped 0.30 percent. SK Hynix surged 2.88 percent, with Naver increasing by 2.22 percent. Meanwhile, LG Chem declined by 2.43 percent and Lotte Chemical saw a significant fall of 5.08 percent. SK Innovation dropped 2.77 percent, POSCO fell 3.29 percent, SK Telecom lost 0.53 percent, KEPCO increased slightly by 0.24 percent, Hyundai Mobis rose 0.22 percent, Hyundai Motor decreased 1.01 percent, and Kia Motors dipped 0.89 percent.

In the United States, markets demonstrated weakness as major indexes, which started the day mixed, quickly declined and ended well below opening levels. The Dow Jones Industrial Average fell 324.80 points, or 0.75 percent, to 42,740.42, the NASDAQ dropped 187.10 points, or 1.01 percent, to settle at 18,315.59, and the S&P 500 contracted by 44.59 points, or 0.76 percent, concluding at 5,815.26.

Wall Street's retreat was influenced by profit-taking, as investors sought to lock in gains following record-high closings for the Dow and S&P on Monday. Earnings reports also pressured the market, with notable declines from UnitedHealth and Citigroup, although Walgreens Boots Alliance rallied on its performance.

On the economic front in the U.S., the Federal Reserve Bank of New York indicated a return to contraction in regional manufacturing activity for October.

Oil prices saw a significant drop on Tuesday, as reports emerged suggesting Israel would refrain from targeting Iran’s oil infrastructure, thereby reducing concerns over supply disruptions. West Texas Intermediate crude oil futures for November fell by $3.25, or 4.4 percent, to $70.58 per barrel.