The Korea Exchange's Yeouido office in Yeongdeungpo-gu, Seoul [Korea Exchange]
The Korea Exchange's Yeouido office in Yeongdeungpo-gu, Seoul [Korea Exchange]

South Korean stock markets will be closed for the Chuseok holiday, but US markets will operate as normal. Investors with overseas holdings will need to monitor key US economic data and movements in interest rates and exchange rates regardless of the domestic closure. Those planning to sell Korean stocks to raise cash for the holiday period should also check when their proceeds will actually be available.

According to Korea Exchange, domestic markets will be closed Thursday and Friday before resuming trading Monday. The New York Stock Exchange and NASDAQ will both operate normally on Thursday and Friday.

The first thing to watch is the external factors driving US markets. During the domestic closure, key US economic indicators, statements from Federal Reserve officials, and developments surrounding a US-China summit are among the main items to track.

Particularly in focus is whether the US will raise interest rates further. With the Fed having raised its benchmark interest rate by 0.25 percentage points this month while leaving the door open to additional hikes, the weekly US jobless claims figure scheduled for release Thursday is seen as a key gauge of the future rate path. Movements in the yen and Japanese government bond yields following the Bank of Japan's rate hike also warrant attention.

Kim Myung-sil, a researcher at iM Securities, said Middle East tensions and international oil prices would be major variables for financial markets during the holiday. "During the break, investors should monitor not only Brent crude and WTI but also the US 10-year Treasury yield, 10-year breakeven inflation, the dollar index and the won-dollar offshore non-deliverable forward rate," Kim said.

The second item is the settlement date for proceeds from domestic stock sales. According to the Financial Services Commission, payment for shares and ETFs sold is made two business days after the sale date. The Chuseok holiday and weekends are excluded from the settlement calculation.

Under this schedule, shares sold Wednesday will be settled Tuesday, while shares sold Tuesday will be settled Monday. Investors who plan to fund holiday spending by selling stocks should be clear on the difference between the sale date and the date funds actually become available for withdrawal.

The third consideration is the terms for overseas stock trading and currency exchange. Trading in US and other foreign stocks remains possible even when domestic markets are closed, but market holidays and brokerage order-support hours vary by country. China's mainland markets will be closed Friday, so investors should confirm the trading schedule for any market they plan to enter.

Some brokerages will support overseas stock trading during the holiday. Shinhan Securities will run its overseas equities and derivatives global desk around the clock, covering major markets including the US, China, Hong Kong and Japan, with dedicated staff on hand to provide market updates and take orders.

Currency exchange timing and withdrawal windows also need to be checked. Even investors using an integrated margin service that allows overseas stock trading in won will find a gap between the indicative exchange rate applied at the time of the order and the actual settlement rate. The date on which proceeds from overseas stock sales become available for withdrawal also varies depending on the settlement schedules of the relevant market and brokerage.


hajun825@heraldcorp.com