South Korea’s stock market saw two consecutive days of gains, with the KOSPI rising over 340 points, or 4.8 percent, recently. On Wednesday alone, the index climbed 239.31 points, or 3.76 percent, to reach 6,598.26, near the 6,600-point level. The index hit an intraday high of 6,674.66. More than 672 stocks rose, compared to just 197 that fell, as technology firms and automobile manufacturers led the way. However, energy companies performed poorly, and investors are watching to see whether the rally can continue into Thursday.
Tech weakness in U.S. markets
The U.S. stock market struggled under pressure from technology stocks. The NASDAQ dropped 0.83 percent, or 221.55 points, on Wednesday. A key concern is the rising costs tied to artificial intelligence development. Newly public SpaceX reported its first quarterly results, showing a large jump in capital spending. This raised investor concerns about the financial strain of AI projects. While the Dow finished slightly higher, the S&P 500 also lost ground, adding to the gloomy tone.
Additional economic news weighed on markets in the U.S. Payroll processor ADP revealed private sector job growth in July was below forecasts, deepening worries. Meanwhile, crude oil prices fell for the third day in a row, hitting $75.28 per barrel. Optimism about the potential reopening of the Strait of Hormuz contributed to the decline. Investors are cautious as these factors create uncertainty about future economic performance.
Economic data to watch
South Korea is set to release its current account data for June later today. In May, the current account surplus was recorded at $38.61 billion, which highlights the country's economic strength despite global headwinds. The latest figures will help market participants gauge how South Korea is faring in a period of sluggish global growth. Strong numbers could support investor confidence and reinforce the nation’s financial resilience.