FX.co ★ Renewed Support Anticipated For South Korea Shares

The South Korean stock market has been exhibiting a seesaw pattern for the last four trading days, bouncing back from a four-day losing streak during which it plummeted nearly 125 points, or 4.6%. The KOSPI index currently hovers just below 2,625 points and is expected to rebound yet again on Wednesday.

The global forecast for Asian markets appears positive, driven by optimism over the earnings season. European and U.S. markets have showcased solid gains, indicating a similar trend for Asian markets.

On Tuesday, the KOSPI ended slightly lower due to losses incurred by the chemical and technology sectors, although automobile stocks rose, and financials showed mixed results. The index fell 6.42 points, or 0.24%, closing at 2,623.02 after fluctuations between 2,619.72 and 2,641.78. The trading volume comprised 316 million shares valued at 9.43 trillion won, with gainers outnumbering decliners by 671 to 403.

Key players such as Shinhan Financial slipped by 0.90%, Samsung Electronics dropped 0.79%, and Samsung SDI fell 3.44%. Conversely, KB Financial increased by 1.01%, Hana Financial by 1.05%, and LG Electronics by 0.87%. Other industry movers included SK Hynix, Naver, LG Chem, Lotte Chemical, S-Oil, SK Innovation, POSCO, SK Telecom, KEPCO, Hyundai Mobis, Hyundai Motor, and Kia Motors.

Wall Street offered a positive lead as major averages opened strong on Tuesday, maintaining momentum throughout the trading day. The Dow surged 263.71 points or 0.69% closing at 38,503.69, NASDAQ spiked 245.33 points or 1.59% to 15,696.64, and the S&P 500 climbed 59.95 points or 1.20% to 5,070.55.

Market shifts stemmed from strong quarterly earnings, companies like Globe Life, GE Aerospace, Kimberly-Clark, and General Motors showcased robust results. In contrast, economic data highlighted a surprising surge in new home sales for March, offset by a slump in building permits.

Investors will be keeping an eye on more economic data this week, including first-quarter U.S. GDP data and the core personal-consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation measure.

Oil prices increased on Tuesday following a slowdown in U.S. manufacturing activity in April, sparking hopes for a potential Federal Reserve interest rate cut. Consequently, West Texas Intermediate crude oil futures for June went up $1.46 or 1.78%, closing at $83.36 a barrel.