Rebound Anticipated For South Korea Shares

The South Korea stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day losing streak in which it had stumbled almost 130 points or 4.2 percent. The KOSPI now sits just above the 3,160-point plateau and if figures to bounce higher again on Friday.

The global forecast for the Asian markets is positive, with bargain hunting expected to provide a boost, especially among oversold technology stocks. The European and U.S. markets were firmly higher and the Asian markets are expected to follow suit.

The KOSPI finished modestly lower on Thursday as losses from the financials, technology stocks and automobile producers were mitigated by support from the chemical companies.

For the day, the index shed 10.77 points or 0.34 percent to finish at 3,162.28 after trading between 3,140.48 and 3,174.53. Volume was 754 million shares worth 13 trillion won. There were 516 decliners and 346 gainers.

Among the actives, Shinhan Financial lost 0.73 percent, while KB Financial retreated 1.36 percent, Hana Financial surrendered 2.33 percent, Samsung Electronics dipped 0.13 percent, LG Electronics fell 0.33 percent, SK Hynix climbed 1.24 percent, Naver added 0.43 percent, LG Chem rallied 2.50 percent, Lotte Chemical advanced 1.23 percent, S-Oil plunged 3.30 percent, POSCO plummeted 5.32 percent, SK Telecom eased 0.16 percent, KEPCO skidded 1.04 percent, Hyundai Motor tanked 2.81 percent, Kia Motors tumbled 3.25 percent and SK Innovation and Hyundai Mobis were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Thursday and picked up steam as the day progressed, cutting into the losses from the previous two days.

The Dow jumped 188.11 points or 0.55 percent to finish at 34,084.15, while the NASDAQ spiked 236.00 points or 1.77 percent to end at 13,535.74 and the S&P 500 advanced 43.44 points or 1.06 percent to close at 4,159.12.

The support on Wall Street came in reaction to the sell-off in the previous session, with upbeat earnings and optimism about global economic recovery helping to offset inflation worries and fears about monetary easing.

In economic news, the Labor Department said unemployment claims in the U.S. dropped last week to their lowest since the week ended March 14. Also, the Philadelphia Fed Manufacturing Index fell in May from a 50-year high in April.

Crude oil prices fell sharply Thursday, extending losses to a third straight day as signs of progress in Iran nuclear talks raised expectations that global crude supply will see a surge in the near term. West Texas Intermediate Crude oil futures for June ended down by $1.31 or 2.1 percent at $62.05 a barrel on the expiration day.