FX.co ★ KOSPI Tipped To Extend Its Gains On Tuesday

The South Korean stock market has experienced an upward trend for two consecutive sessions, gaining over 50 points or 2 percent in total. As a result, the KOSPI now stands slightly above the 2,530 mark and is anticipated to open positively on Tuesday.

Globally, the forecast for Asian markets is favorable, buoyed by optimism surrounding the global economic outlook. However, a decline in oil prices has somewhat tempered these gains. Both European and U.S. markets showed positive results, and it's likely that Asian markets will align with this trend.

On Monday, the KOSPI saw significant gains, driven primarily by financial, chemical, and technology sectors, while industrials showed mixed results. The index increased by 33.10 points, or 1.32 percent, closing at 2,534.34, fluctuating between 2,517.98 and 2,541.76 throughout the day. Trading volume reached 535.26 million shares, valued at 12.54 trillion won, with 612 stocks advancing and 279 declining.

Specifically, Shinhan Financial rose by 1.26 percent, while KB Financial fell by 0.41 percent; Hana Financial increased by 0.64 percent. Samsung Electronics saw a significant boost of 3.39 percent, Samsung SDI climbed 3.16 percent, and LG Electronics rose by 0.96 percent. SK Hynix edged up by 0.17 percent, Naver strengthened by 1.68 percent, LG Chem surged 2.85 percent, and Lotte Chemical gained 1.96 percent. SK Innovation saw a 0.78 percent increase. Conversely, POSCO fell by 0.66 percent, SK Telecom declined by 0.70 percent, Hyundai Mobis dropped 2.95 percent, Hyundai Motor rose by 0.92 percent, Kia Motors decreased by 0.61 percent, and KEPCO remained unchanged.

The positive trend from Wall Street is notable, as major averages opened higher on Monday and maintained their upward trajectory throughout the trading session.

The Dow Jones Industrial Average surged by 440.06 points or 0.99 percent, closing at 44,736.57. The NASDAQ increased by 51.19 points or 0.48 percent, finishing at 20,220.36, while the S&P 500 gained 18.03 points or 0.30 percent, ending at 5,987.37.

These gains built on last week's momentum, partly due to a positive market response to the announcement that President-elect Donald Trump plans to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is perceived as market-friendly and advocates for deficit reduction. He has also recommended a gradual approach to implementing Trump's proposed tariff increases, aiming to mitigate potential inflationary impacts.

Nevertheless, investor enthusiasm diminished later in the day as several upcoming key economic reports prompted traders to exercise caution.

On the commodities front, oil prices dropped significantly on Monday, influenced by reports of a potential cease-fire agreement between Israel and Hezbollah in the near future. West Texas Intermediate Crude oil futures for January declined by $2.30, or 3.2 percent, settling at $68.94 a barrel.