Asian markets improve on positive sentiment, Korean KOSPI rises by almost 1%

• Asian markets improve on dovish Fed outlook on interest rates trajectory.
• A Japanese survey showed that business confidence among Japanese manufacturers increased to a near two-year high.
• South Korea abolished the registration of foreign investors to increase foreign capital.

Asian shares present a mixed picture on Thursday, with a generally positive sentiment influenced by the dovish US Federal Reserve’s outlook. The Fed’s indication of the end of its tightening cycle and the potential reduction in borrowing costs in the year 2024 contribute to the positive market mood.

As of now, China’s SSE Composite Index rises 0.03% at 2,969, but the Shenzhen Component Index declines 0.26% to 9,452. Japan’s Nikkei 225 fell to 32,711, down by 0.65%. Hong Kong’s Hang Seng is up at 16,380, while the Korean KOSPI has risen to 2,535, up by 0.97%.

The Asian Development Bank anticipates a positive end to the year for Asia, with stronger-than-expected growth attributed largely to the recovery in China’s economy.

South Korea implemented a change to enhance foreign capital in its equity market, eliminating the requirement for foreign traders to register with government authorities to trade local stocks.

A central bank survey in Japan reveals that business confidence among Japanese manufacturers reached a near two-year high in the three months to December. This suggests that the necessary economic conditions for unwinding massive stimulus measures may be falling into place.