South Korea Stock Market Rallies Amid Global Downturn

Despite some recent fluctuations, the South Korea stock market shows signs of resilience, with the KOSPI rising to nearly 2,600. However, global trends indicate potential challenges ahead, particularly with rising treasury yields and concerns over interest rates.

Date: 24-10-2024

AI Rating: 6

The report highlights a mixed outlook for the South Korea stock market, specifically the KOSPI index, which experienced a net gain amidst a generally negative global market sentiment. The KOSPI finished at 2,599.62, recovering some ground with a rise of 28.92 points or 1.12 percent. Strength was observed in financial shares and technology stocks, notably with major players like Samsung Electronics and LG Electronics showing significant gains of 2.43 percent and 3.32 percent, respectively.

While the KOSPI showed resilience, the broader global market indicators remain weak. The U.S. market closed lower, with the S&P 500 dropping 0.92 percent. This decline is attributed to rising treasury yields, which have reached a three-month high, contributing to negative investor sentiment regarding future interest rate cuts by the Federal Reserve. Expectations are mixed as the Fed is anticipated to lower interest rates next month, but skepticism is growing about subsequent cuts.

Moreover, oil prices have declined, influenced by an unexpected increase in U.S. crude oil inventories and a stronger dollar, which further adds to the complexity of the market environment.

Looking ahead, South Korea is set to release preliminary GDP data, forecasting a quarter-on-quarter rise of 0.5 percent and a year-on-year growth of 2.0 percent. Although these figures could influence investor sentiment positively, the prevailing global dynamics may overshadow these local developments.

Stocks: 005940.KS 005935.KS 000660.KS 051910.KS 000270.KS 068270.KS 012330.KS 005380.KS 009150.KS 280920.KS 005490.KS 003550.KS 005490.KS