Tech Shares May Keep KOSPI Floundering

The South Korean stock market has experienced declines over the past two consecutive sessions, shedding nearly 35 points or 1.4%. Currently, the KOSPI index is positioned just below the 2,490 mark and shows little movement for the upcoming Tuesday session. Globally, the outlook for Asian markets appears uncertain, with potential gains in the oil sector likely counterbalanced by losses in the technology sector. European markets ended lower, while U.S. exchanges showed modest gains, suggesting Asian markets may exhibit mixed performance. On Monday, KOSPI saw a significant drop following setbacks in technology, chemical, and industrial stocks, although financial stocks provided some stability. The index fell by 26.22 points or 1.04%, closing at 2,489.56 after oscillating between 2,483.73 and 2,513.93. Trading volume reached 569.34 million shares, valued at 8.89 trillion won, with 637 stocks declining and 261 advancing. Noteworthy performances included Shinhan Financial edging up by 0.30%, KB Financial surging 1.71%, while Samsung Electronics dropped 2.17%, and SK Hynix fell sharply by 4.52%. Other significant moves included LG Electronics declining by 1.75% and Hyundai Motor descending by 2.65%, among others.

Shifting focus to Wall Street, the picture was mixed yet slightly positive. Major indices opened and concluded the day on varying sides of the neutral line. The Dow Jones Industrial Average surged by 359.95 points or 0.86% to close at 42,298.40. Conversely, the NASDAQ dipped by 74.01 points or 0.39% to 19,087.62, while the S&P 500 climbed 8.27 points or 0.14% to finish at 5,835.31. Early session pressure on Wall Street came mainly from the tech sector, as Nvidia (NVDA), a key player in AI, saw a substantial drop of up to 4.7%. Additional market apprehension was driven by concerns regarding interest rates, amplified by a surprisingly robust monthly jobs report released last Friday. Over the session, selling pressures diminished, encouraging some traders to purchase undervalued stocks, facilitating a rebound in the S&P 500 from its lowest point in over two months.

Meanwhile, oil prices surged to a five-month high on Monday, influenced by potential supply disruptions following the U.S.'s comprehensive sanctions on Russian oil exports and an appreciating U.S. dollar. West Texas Intermediate Crude oil futures for February rose by $2.25, nearly 3%, to settle at $78.82 per barrel.

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