FX.co ★ South Korea Shares Tipped To Open In The Green

The South Korean stock market rebounded on Tuesday after a break in a two-day rally where it amassed nearly 40 points, equivalent to a 1.6% increase. The KOSPI index is currently just over 2,680 points and is anticipated to gain further momentum on Wednesday.

Overall, the international forecast for Asian markets is hopeful, driven by optimistic projections for interest rates. The European and American stock markets experienced a rise, indicating a favorable opening scenario for their Asian counterparts.

Tuesday saw a modest increase in the KOSPI index, mainly driven by a boost in stocks from the technology and chemicals sectors. In contrast, the financials and industrial sectors demonstrated mixed performances.

On Tuesday, the index rose by 21.97 points or 0.83%, closing at 2,681.81 after fluctuating between 2,659.72 and 2,686.14 throughout the day. The market churned 390 million shares, valued at 9.45 trillion won. Losers at 495 outnumbered the 365 gainers.

Notable company performances included Shinhan Financial, which dropped by 0.44%. In contrast, KB Financial rose by 3.54%, and Samsung Electronics gained 1.24%. Additionally, LG Electronics increased by 2.41%, while SK Hynix dipped by 0.54%. LG Chem advanced by 3.33%. Other companies like POSCO, SK Telecom, and Hyundai Mobis saw an increase of 2.97%, 0.77%, and 0.20% respectively, whereas KEPCO, Hyundai Motor, and Kia Motors experienced losses.

Tuesday's Wall Street performance showed a promising start, as major averages swiftly switched gears from an even opening to substantial growth, ending the day on a high note.

Consumer price inflation reports for February issued by the Labor Department were credited for the surge on Wall Street. Core price growth decelerated slightly less than anticipated, yet this dip appears to have contributed to the optimistic view regarding the Federal Reserve's potential interest rates cut in June.

A separate Labor Department report on producer price inflation for February is set to be released on Thursday.

On the oil front, futures closed lower on Tuesday due to the US inflation data and ongoing concern over the demand outlook. West Texas Intermediate Crude oil futures for April dropped $0.37 to $77.56 per barrel.