The South Korean stock market has experienced gains in two out of the past three trading sessions, following a three-day decline that saw it lose nearly 20 points, or 0.7 percent. Currently, the KOSPI index sits just below the 2,675-point threshold, with prospects of extending its gains as the new week begins.
The global forecast for Asian markets is optimistic due to positive sentiment surrounding interest rate prospects. While European markets saw a slight downturn, U.S. markets experienced an upward trend that is expected to positively influence Asian indices.
On Friday, the KOSPI ended the day modestly higher, primarily driven by technology stocks, despite weaknesses in the financial and industrial sectors. The index increased by 12.03 points, or 0.45 percent, ending at 2,674.31, within a trading range of 2,668.66 to 2,686.51. The trading volume was 266.9 million shares, valued at 9.71 trillion won, with 580 stocks advancing and 292 declining.
Among active stocks, Shinhan Financial and Hana Financial both fell by 1.75 percent, while KB Financial declined by 1.15 percent. Samsung Electronics saw a modest gain of 0.41 percent, and LG Electronics rose by 2.16 percent. SK Hynix surged by 2.36 percent, and Naver spiked by 2.55 percent. Meanwhile, Samsung SDI, Hyundai Mobis, and Hyundai Motor experienced declines, whereas SK Innovation and LG Chem posted gains of 1.95 percent and 0.31 percent, respectively.
Wall Street provided solid guidance, with the major averages opening higher on Friday, dipping midday, but rallying towards the close. The Dow Jones Industrial Average rose by 228.03 points, or 0.55 percent, to a new record high of 41,563.08. The NASDAQ climbed by 197.20 points, or 1.13 percent, concluding at 17,713.62, and the S&P 500 advanced by 56.44 points, or 1.01 percent, finishing at 5,648.40. Over the week, the NASDAQ declined by 0.9 percent, while the Dow and the S&P 500 gained 0.9 percent and 0.2 percent, respectively.
The positive close on Wall Street was driven by a report from the Commerce Department on U.S. consumer price inflation—an indicator closely watched by the Federal Reserve. The report indicated that consumer prices increased in July as expected, while the annual rate of price growth remained unexpectedly steady. This data reinforced expectations for an upcoming interest rate cut by the Federal Reserve, though uncertainty about the rate cut's pace led to market volatility.
According to the CME Group's FedWatch Tool, there is a 69.5 percent probability of a quarter-point rate cut next month and a 30.5 percent chance of a half-point rate cut.
In the commodities market, crude oil prices saw a significant decline on Friday following reports that OPEC plans to proceed with an oil output increase in October. West Texas Intermediate crude for October delivery fell by $2.36, or 3.1 percent, settling at $73.55 per barrel.
