FX.co ★ Win Streak May Continue For South Korea Shares

The South Korean stock market is on an upward trend, having gained almost 60 points or 2.3% in two consecutive sessions. The KOSPI is now just above the 2,685-point plateau and it is likely to continue growing on Tuesday.

The worldwide market forecast suggests a flat to slightly positive outlook for the Asian markets ahead of Wednesday's FOMC policy announcement. While European markets were weak, the U.S. markets fared slightly better, leading the Asian markets to find a middle ground.

Monday's close for the KOSPI showed significant growth, largely due to gains from technology stocks, chemicals, and industrials. Meanwhile, the financials remained mixed. On Monday, KOSPI gained 31.11 points or 1.17%, closing at a daily high of 2,687.44. Total volume was 461 million shares worth 10.2 trillion won, with 719 gaining stocks and 165 declining stocks.

Among active companies, Shinhan Financial rose by 0.21% while KB Financial advanced by 0.79%. However, Hana Financial fell by 0.50%. Notable gains were seen from Samsung SDI, LG Electronics, LG Chem, and Lotte Chemical among others.

Wall Street's mild upside led major averages to open higher on Monday and mostly stay in the green, ending slightly higher. The Dow ended at 38,386.09, up 146.43 points or 0.38%, while the NASDAQ advanced by 55.18 points or 0.35% to close at 15,983.08. The S&P 500 gained 16.21 points or 0.32% to end at 5,116.17.

The slight increase on Wall Street is due to the positive momentum from last week that came on the back of promising tech earnings. However, trading was somewhat subdued as traders anticipate Wednesday's Federal Reserve monetary policy announcement. While no change in interest rates is expected, the statement and press conference by Fed Chair Jerome Powell may reveal further information about rate outlooks.

Oil futures fell on Monday due to concerns about growth, oil demand outlook, and the increasing probability of the Federal Reserve delaying interest rate cuts. West Texas Intermediate Crude oil futures for June ended down by $1.22 or 1.45% at $82.63 a barrel.

Back in South Korea, industrial production and retail sales data for March are set to be released later this morning. In February, industrial production rose by 3.1% monthly and 4.8% annually, while retail sales dropped by 3.1% from the previous month.