The South Korean stock market halted a two-day losing streak on Friday, recuperating over 35 points or 1.4 percent. The market sits just below the 2,650-point plateau, however, it may tilt southward come Monday. The global outlook for Asian markets is uncertain, bearing the weight of pessimism over interest rates. European markets rose, US bourses fell, with Asian markets likely to land somewhere in between.
The KOSPI experienced a significant rise on Friday, bolstered by gains from the finance sector, automobile manufacturers, chemical companies, and tech stocks. The index gained 34.96 points, or 1.34 percent, ending at an impressive 2,648.76. The day saw 584.7 million shares being traded worth 10 trillion won, with 627 decliners and 249 gainers.
Noteworthy performers included Shinhan Financial, up by 3.49 percent, KB Financial, gaining 3.99 percent, and Hana Financial, shooting up by 5.09 percent. Samsung Electronics slipped 0.27 percent, while Samsung SDI soared 4.79 percent and LG Electronics rose 1.43 percent. Other gainers included LG Chem (4.24 percent), Lotte Chemical (4.57 percent), SK Innovation (3.92 percent), Hyundai Motor (5.21 percent), and Kia Motors (2.03 percent).
Wall Street ended the week on a sour note, with all main indexes in the red on Friday due to increased concerns about interest rates. This was following a report from the Labor Department indicating a larger than expected increase in US producer prices in January.
This data, coming on the heels of last week’s unexpected rise in consumer price inflation, has stoked the fear that the Federal Reserve might delay the interest rate cuts longer than investors anticipated. However, these fears were slightly offset by a report from the University of Michigan that charted a rise in consumer sentiment in February.
In energy markets, oil prices edged up on Friday due to concerns about possible supply disruptions in the Middle East. The most active West Texas Intermediate Crude futures touched an 11-week high, finally closing higher by $1.16 to rest at $79.19 a barrel.
