Korea Stocks Face Volatility as Fed Meeting and Oil Prices Loom

The South Korean stock market is bracing for increased volatility this week due to various global economic factors. The Federal Reserve's upcoming September FOMC meeting on the 16th, where there's a possibility of a rate hike, will be closely watched. International oil prices have surpassed $100 a barrel, and U.S. Government Bonds yields are approaching 5%, adding pressure on the stock market.

Experts advise investors to focus on sectors supported by earnings outlooks rather than chasing rallies. Rising interest rates can weigh on stocks in Korea, increasing the equity discount rate rather than affecting corporate earnings.

A researcher at Shinhan Investment & Securities noted that 'the possibility of a rate hike has increased' with oil prices topping $100, and emphasized the need to monitor hints about the terminal rate in the dot plot.