Seoul's Stock Market Teetering on Edge - KOSPI May Give Back Gains Friday

After snapping a brutal two-day losing streak on Thursday, South Korea’s KOSPI index is sitting in a precarious spot. The index jumped 75 points (1.92%) to close at 4,004.85, but don’t get too comfortable - it could all evaporate on Friday.

Here’s the thing: Asian markets are following Wall Street’s lead, and it’s pointing downward. The U.S. markets took a beating Thursday despite Nvidia’s strong earnings report - the Dow dropped 0.84%, NASDAQ nosedived 2.15%, and the S&P 500 fell 1.56%. The culprit? A confusing jobs report that’s tanking hopes for aggressive Fed rate cuts in December.

What moved the KOSPI:

• Tech stocks and steelmakers led the charge (Samsung Electronics up 4.25%, POSCO up 2.55%)
• Financials stayed weak (KB Financial, Hana Financial both dipped)
• Gainers outnumbered losers 749 to 141
• Volume hit 355.8M shares worth ~$11.3B USD

The bigger picture: Interest rate expectations are in freefall. The Fed rate cut odds for December dropped from 98.8% a month ago to just 39.8% now. That’s a gut punch for equity markets. Add in geopolitical noise (Russia-Ukraine peace talks), and you’ve got a recipe for volatility.

Crude oil ticked down 0.44% to $59.18/barrel as investors digest the geopolitical shifts.

Bottom line: KOSPI’s bounce Thursday is fragile. With Wall Street likely staying under pressure, Seoul’s bulls might be in for a rough Friday.