Anticipated Profits for South Korean Stocks Expected in Coming Days
In the global market landscape, the Dow Jones Industrial Average experienced a dip on Tuesday, with the index falling 436.36 points or 0.98 percent to finish at 44,023.29. Meanwhile, the NASDAQ Composite bucked the trend, gaining 37.47 points or 0.18 percent to close at a record high of 20,677.80.
In Asia, the South Korea stock market, KOSPI, has advanced in back-to-back sessions, reaching a new four-year closing high. The TSE (Tokyo Stock Exchange) also finished modestly higher on Tuesday.
The technology sector is expected to be a key driver in the Asian market, particularly in developed emerging markets like South Korea and Taiwan. These regions dominate the chipmaking supply chain and are supported by strong corporate governance reforms and capital efficiency initiatives. However, their performance is somewhat tied to continued capital expenditure by large U.S. tech firms, which remains uncertain if the U.S. economic growth slows down.
Nvidia, a major player in the tech sector, will soon resume H20 AI chip sales to China, indicating a positive outlook for the technology sector in the region. Nvidia surged by 4.0 percent to a record closing high on Tuesday.
In contrast, property stocks, especially in Hong Kong, have shown very strong performance in the first half of the year, with real estate securities rising over 20%. Large-cap developers trade at historic discounts and are expected to see cyclical improvement rather than re-rating.
For the finance and oil sectors, specific direct forecast data is limited. However, emerging markets such as India show growth in financials, driven by domestic demand and manufacturing expansion, suggesting potential upside in finance stocks aligned with broader economic growth. The general economic optimism and easing of monetary policies in Asia and Australia could also support these sectors indirectly.
The oil sector prospects appear stable but less highlighted in current forecasts, with commodity prices reported as stable.
South Korea will release June numbers for imports, exports, and trade balance later this morning. For the day, the TSE index gained 13.25 points or 0.41 percent to finish at 3,215.28. The uptick by the NASDAQ came amid strength in the semiconductor stocks, as reflected by the 1.3 percent gain posted by the Philadelphia Semiconductor Index.
The global forecast for the Asian markets suggests weakness from oil, finance, and property stocks, with technology companies potentially offering support. The lead from Wall Street indicates that the major averages opened mixed on Tuesday and trended generally lower, remaining mixed at the close. The Philadelphia Housing Sector Index experienced a 3.3 percent plunge, and the Philadelphia Oil Service Index fell by 3.1 percent.
Crude oil price for August delivery closed down by $0.46 at $66.52 per barrel, indicating a stable but not explosive gain in the oil sector. Volume on the TSE was 415.06 million shares worth 11.94 trillion won.
The forecast for Asian markets in mid-2025 suggests a generally optimistic outlook, with notable distinctions in the performance potential of various sectors such as technology, oil, finance, and property stocks.
- The technology sector, a key driver in the Asian market, is expected to offer support in the global foreseecast for the Asian markets, especially in developed emerging markets like South Korea and Taiwan, given their dominance in the chipmaking supply chain and strong reforms.
- In the finance sector, emerging markets such as India show growth potential, driven by domestic demand and manufacturing expansion, suggesting potential upside in finance stocks aligned with broader economic growth.
