South Korea Shares May Take Further Damage On Wednesday

The South Korean stock market has been on a downward trajectory for the past two sessions, losing nearly 40 points, or 1.4%. As a result, the KOSPI is now poised just below the 2,460-point threshold and is expected to face continued pressure as trading resumes on Wednesday.

The outlook for Asian markets remains bleak, primarily due to uncertainty surrounding the Federal Open Market Committee's (FOMC) impending interest rate decision later today. Both European and U.S. markets experienced declines, and it is anticipated that Asian markets may follow suit, although some buying interest may emerge as the day progresses.

The KOSPI experienced a significant drop on Tuesday, primarily driven by declines in financial, technology, and chemical stocks. On that day, the index fell by 32.16 points, equating to a 1.29% decrease, closing at 2,456.81 with a trading range between 2,455.05 and 2,487.31. The market saw a volume of 547.9 million shares with a turnover value of 9.03 trillion won. In total, 493 stocks declined, while 384 gained.

Key market players were notably affected: Shinhan Financial saw a 1.72% decrease, KB Financial declined by 0.24%, and Hana Financial fell by 1.02%. Among tech giants, Samsung Electronics dipped 2.52%, and Samsung SDI faced a substantial 6.08% drop. In other sectors, LG Electronics slipped 1.14%, while SK Hynix bucked the trend with a 2.62% increase. Other significant moves included Naver decreasing by 2.10%, LG Chem losing 4.10%, Lotte Chemical dropping 3.37%, and SK Innovation decreasing by 1.52%. POSCO Holdings fell 2.40%, SK Telecom was down 1.04%, and KEPCO faced a 1.16% decrease. Conversely, Hyundai Mobis gained 0.84%, Hyundai Motor dipped 2.13%, and Kia Motors edged up by 0.42%.

Wall Street's performance serves as a bearish indicator, with all major indices in decline. The Dow Jones Industrial Average fell by 267.58 points, or 0.61%, closing at 43,449.90. The NASDAQ Composite slipped by 64.83 points, or 0.32%, landing at 20,109.06, while the S&P 500 dropped 23.47 points, or 0.39%, ending the session at 6,050.61.

The downturn in U.S. markets was predominantly driven by a retreat in technology stocks, which had previously led gains, with networking and semiconductor sectors being notably affected. Additionally, telecom, financial, housing, and steel stocks also witnessed declines.

As investors turn their attention to the Federal Reserve's forthcoming monetary policy announcement, expectations are centered around a quarter-point rate reduction. Market participants will be scrutinizing the Fed's accompanying statement and its latest economic projections, especially regarding future rate outlooks.

In energy markets, oil prices fell amid apprehensions about global demand and potential oversupply in the coming year. West Texas Intermediate crude oil futures for January settled at $70.08 a barrel, marking a $0.63, or 0.9%, decline.

The material has been provided by InstaForex Company - www.instaforex.com
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