On Friday, the South Korean stock market experienced a downturn, reversing the upward momentum gained after halting a two-day decline during which it lost over 25 points, or 1 percent. Presently, the KOSPI index is positioned slightly above the 2,560 mark, and it is expected to hover around this range on Monday.
Globally, the outlook for Asian markets presented a mixed picture as nations assessed the outcomes of the U.S. elections. While European markets witnessed a decline, U.S. markets experienced an upswing. Consequently, Asian markets are projected to find a middle ground between these divergent trends.
The KOSPI index concluded Friday with minor losses attributed to declines in the financial, technology, and chemical sectors. Specifically, the index dipped by 3.48 points, or 0.14 percent, closing at 2,571.15. It fluctuated between 2,553.42 and 2,593.15 throughout the trading session, with a trading volume of 440.7 million shares valued at 9.63 trillion won. In terms of market breadth, there were 469 losers compared to 388 gainers.
Noteworthy market movements included Shinhan Financial's 0.35 percent decline, KB Financial's 0.96 percent drop, Samsung Electronics' 0.87 percent fall, and Samsung SDI's 1.22 percent retreat. LG Electronics saw a decrease of 0.44 percent, while SK Hynix bucked the trend by rallying 1.57 percent. Naver plummeted 2.84 percent, LG Chem fell 0.33 percent, and Lotte Chemical experienced a severe 9.66 percent decline. On the other hand, SK Innovation surged 2.87 percent, and Hyundai Mobis rose 2.09 percent. Meanwhile, POSCO, SK Telecom, KEPCO, Hyundai Motor, and Kia Motors faced losses ranging from 1.06 percent to 2.63 percent, with Hana Financial remaining unchanged.
Wall Street provided positive cues, as the major indices opened higher on Friday, achieving modest gains and setting new record closing highs. The Dow climbed 259.65 points, or 0.59 percent, to finish at 43,988.99. The NASDAQ increased by 17.32 points, or 0.09 percent, closing at 19,286.78, while the S&P 500 advanced by 22.44 points, or 0.38 percent, ending at 5,995.54. For the week, the NASDAQ showed a robust gain of 5.7 percent, while the S&P 500 and the Dow rose by 4.7 percent and 4.6 percent, respectively.
The boost in stock prices was driven by a positive market response to former President Donald Trump's decisive win in the U.S. presidential election, an outcome anticipated to favor corporate interests. Additionally, investors continued to evaluate the Federal Reserve's decision to decrease interest rates by a quarter-point—a move that was widely expected. Federal Reserve Chair Jerome Powell emphasized that future rate decisions would be made on a meeting-by-meeting basis, devoid of a predetermined path.
On the commodities front, oil prices dropped sharply on Friday. The decline was attributed to concerns over demand, driven by data indicating a reduction in China's oil imports and dissatisfaction with the magnitude of China's recent stimulus measures. West Texas Intermediate Crude oil futures for December fell $1.98, or 2.7 percent, settling at $70.38 per barrel; despite this decline, the contract saw a weekly gain of 1 percent.
