The South Korean stock market halted a three-day losing streak on Friday, recovering nearly 90 points or 3.4 percent, with the KOSPI now positioned just above the 2,635 mark. Prospects for continued support are anticipated as the week progresses.
Global forecasts for Asian markets are cautiously optimistic, driven by an improved outlook on interest rates. Both European and U.S. markets concluded mostly higher, setting a precedent the Asian markets are expected to follow.
On Friday, the KOSPI concluded with modest gains. The index saw increases from chemical companies despite weaknesses in technology stocks and mixed results from the financial sector.
The KOSPI rose by 1.08 points, or 0.04 percent, to close at 2,636.52, oscillating between 2,635.77 and 2,664.48 throughout the day. Trading volume amounted to 594.78 million shares, valued at 15.45 trillion won, with 533 stocks advancing and 332 declining.
Key market movers included:
- Shinhan Financial rallying 2.50 percent
- KB Financial up by 0.89 percent
- Hana Financial gaining 1.31 percent
- Samsung SDI falling 1.19 percent
- LG Electronics down by 1.41 percent
- SK Hynix dropping 3.32 percent
- Naver dipping 0.12 percent
- LG Chem increasing 0.29 percent
- Lotte Chemical surging 2.08 percent
- S-Oil climbing 1.19 percent
- SK Innovation declining 2.15 percent
- POSCO easing 0.14 percent
- SK Telecom retreating 1.35 percent
- KEPCO jumping 1.99 percent
- Hyundai Mobis shedding 0.23 percent
- Hyundai Motor down 1.56 percent
- Kia Motors and Samsung Electronics remaining unchanged
Wall Street's performance on Friday was predominantly positive. Major averages opened on an upward trend, faced a midday slump but recovered to close mixed. The Dow Jones Industrial Average surged by 574.82 points, or 1.51 percent, to end at 38,686.32. The NASDAQ slightly dipped by 2.08 points, or 0.01 percent, closing at 16,735.02, while the S&P 500 gained 42.03 points, or 0.80 percent, to finish at 5,277.51.
For the week, the S&P 500 declined by 0.5 percent, with both the Dow and NASDAQ dropping by 1.0 percent and 1.1 percent respectively, despite strong gains recorded in May.
The mixed closing on Wall Street was influenced by the Commerce Department's data indicating that U.S. consumer prices increased as estimated in April, with core consumer prices slightly below expectations. These inflation readings, favorably regarded by the Federal Reserve, fueled optimism for potential rate cuts in the near future.
Oil prices continued their downward trajectory for a third consecutive day on Friday amid concerns about demand outlook. Despite this, positive sentiment around OPEC's extension of production cuts curtailed further losses. West Texas Intermediate crude oil futures for July declined by $0.92 to settle at $76.99 per barrel.
