Extended closures in major markets prompt experts to advise cash holdings or low-risk blue-chip shifts
October marks a period when stock markets in major countries, including South Korea, will close for holidays one after another. This presents a critical time for individual investors in domestic and international stocks to adjust their strategies.
South Korea has an extended Chuseok holiday, including National Foundation Day, while China observes holidays for National Day and the Mid-Autumn Festival. The U.S. will close for Columbus Day, with only settlements halted, and markets in Hong Kong, Japan, and Singapore will also take sequential breaks for public holidays. It is rare for global markets to simultaneously pause for a breather.
During periods of concentrated market closures, investor caution tends to persist, leading to reduced trading volumes and a temporary lack of clear market direction. Investors often opt for trading strategies focused on stable large-cap stocks during this time.
In particular, as the cautious atmosphere may prolong around holidays and profit-taking could increase, it is essential to check each country’s public holidays and review investment portfolios.
The country with the most stock market closures in October is China, where markets will be shut for six days from October 1 to 8 for National Day. On October 29, mainland Chinese markets will operate normally, but the Hong Kong market will close for the Mid-Autumn Festival, making trading in Shanghai A-shares and Shenzhen A-shares impossible.
On October 13, Japan and Canada will both close their markets. Japan observes Health-sports Day, while Canada marks Thanksgiving.
The U.S., also observing Columbus Day on the same day, will halt settlement markets, but stock trading will proceed normally. Typically, transactions settle two business days after orders, but this will be delayed by one day, meaning settlements will occur three business days later. Investors should exercise caution to avoid confusion in fund utilization after trading.
On October 20, Singapore will close to commemorate Deepavali, a Hindu festival.
Securities firms advise that during periods of simultaneous global market closures, delayed responses to unexpected issues may occur. Therefore, increasing cash holdings or rebalancing portfolios toward low-risk blue-chip stocks could be advantageous in the short term.
Foreign investors’ net purchase of Samsung Electronics, the top market-cap stock in the Korean stock market, during the past week (September 26 to October 1) can be understood in this context. Foreigners net bought 854.3 billion Korean won worth of Samsung Electronics shares during this period, along with 15.04 billion Korean won in Samsung Electronics preferred shares.
Investors should also monitor whether markets they are invested in will be closed around key U.S. economic indicators, which significantly influence global markets. The U.S. will release non-farm employment and ISM Services PMI data on October 3, August trade figures on October 7, Federal Open Market Committee (FOMC) meeting minutes on October 9, and Consumer Price Index (CPI) data on October 15. Producer Price Index (PPI), September retail sales, and the October FOMC announcement are also scheduled for October 16 and 30, respectively.
A securities analyst noted, “It is difficult to respond immediately to issues like economic indicator releases when markets are closed, so caution and risk-averse sentiment typically prevail. It is crucial to check holiday schedules in advance and adjust asset management strategies accordingly.”
