Seoul Stocks Bounce Back: Tech & Financials Lead Recovery

South Korea’s stock market finally caught a break on Tuesday, snapping a brutal two-day losing streak that had wiped out 160 points (4%). The KOSPI climbed 11.72 points to 3,857.78, just shy of the 3,860 resistance level, and traders are betting on another green day Wednesday.

What’s Driving the Rebound?

The rally was pretty clear-cut: financial stocks and semiconductor plays carried the load. Shinhan Financial (+1.57%), Samsung Electronics (+2.69%), and LG Electronics (+1.43%) all flexed on Tuesday. The standout performer? KEPCO absolutely skyrocketed 6.85% — that’s the kind of move that gets traders talking.

On the flip side, Naver took a nosedive (-3.07%), while chemicals lagged overall. Volume came in decent at 275.5 million shares ($13.1 trillion won), with 553 decliners still outnumbering 325 gainers — a sign the market’s still got some healing to do.

The Global Backdrop

Wall Street set a positive tone overnight. All three major indexes are now in green-light mode:

• Dow: +664 points (+1.43%) to 47,112
• S&P 500: +61 points (+0.91%) to 6,766
• NASDAQ: +154 points (+0.67%) to 23,026

The secret sauce? Fed officials are sounding dovish again. Market expectations for a rate cut in December have surged to 82.7% — up from 50% just a week ago. Translation: cheaper money ahead could mean better valuations for risk assets.

One Headwind

Crude oil got crushed on Ukraine peace deal rumors, dropping 1.61% to $57.89/barrel. If that sticks, it could mean inflation relief — music to the Fed’s ears.