On Friday, South Korea's KOSPI index climbed by 1,001.89 points, or 17.91 percent. It closed at 6,595.45. This is the largest one-day gain in the index's history. The KOSPI had dropped over 1,170 points, or 18.2 percent, in the three days before. Its value recovered, ending just under the 6,600-point mark. The trading range was 5,629.76 to 6,630.77. The KOSPI has finished higher in two of three trading days since the end of the three-day losing streak, and now sits just beneath the 6,360-point plateau. It is expected to open to the upside again on Wednesday.
Looking ahead, the Asian markets are forecasted to show signs of improvement, with retail and energy stocks possibly leading the charge. In Europe, markets were a mix of gains and losses, while U.S. exchanges rose. The performance of Asian markets is expected to reflect a balance between these two regions. Wall Street sent a strong signal as key indices opened higher on Friday, recovered after an initial decline, and closed near their highest levels of the session. The lead from Wall Street is strong as the major averages opened solidly higher and continued to accelerate throughout the day, ending at fresh record closing highs.
Over the week, the NASDAQ gained 1.5 percent. Both the S&P 500 and the Dow rose 1 percent. The U.S. market’s strength was fueled by a significant rise in Amazon shares. The company announced better-than-expected revenue from its A2 segment. It also reported growth in its cloud services. This bullish trend in the U.S. supported a hopeful outlook for the KOSPI index. The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days. Later, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well.
At the same time, investors largely ignored a jump in Treasury yields. The 10-year yield climbed to its highest since early 2025. This was driven by the spike in oil prices. The global forecast for the Asian markets is upbeat on falling crude oil prices and optimism for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion. The KOSPI finished modestly higher on Tuesday as gains from the technology stocks and financial shares were capped by weakness among the automobile producers. For the day, the index climbed 101.50 points or 1.62 percent to finish at 6,358.95 after trading between 6,080.25 and 6,389.40. Volume was 310.58 million shares worth 27.87 trillion won. There were 786 gainers and 95 decliners. Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent it reported better than expected second quarter results and raised its full-year guidance. In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.