KOSPI Predicted To Extend Losing Streak

The South Korea stock market has finished lower in three straight sessions, sliding almost 50 points or 1.9 percent along the way. The KOSPI now rests just beneath the 2,645-point plateau and it’s likely to take further damage again on Monday.

The global forecast for the Asian markets is soft on concerns for the global economy and for the outlook for interest rates, with technology stocks particularly likely to slide. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KOSPI finished sharply lower on Friday following losses from the financial shares and technology stocks, while the airlines were up and the chemicals and industrials were mixed.

For the day, the index dropped 33.06 points or 1.23 percent to finish at 2,644.51 after trading between 2,635.97 and 2,652.51. Volume was 1.31 billion shares worth 10.4 trillion won. There were 655 decliners and 227 gainers.

Among the actives, Shinhan Financial shed 0.59 percent, while KB Financial lost 0.50 percent, Hana Financial fell 0.42 percent, Samsung Electronics tumbled 2.06 percent, Samsung SDI advanced 0.82 percent, LG Electronics dipped 0.43 percent, SK Hynix declined 1.83 percent, Naver plunged 3.55 percent, LG Chem rose 0.39 percent, Lotte Chemical sank 0.76 percent, S-Oil surged 3.26 percent, Korean Air Lines soared 2.18 percent, Asiana Airlines climbed 1.02 percent, POSCO surrendered 1.89 percent, SK Telecom slumped 0.69 percent, KEPCO slid 0.44 percent, Hyundai Motor dropped 0.82 percent, Kia Motors added 0.48 percent and SK Innovation was unchanged.

The lead from Wall Street ends up negative as the major averages spent most of Friday bouncing back and forth across the unchanged line before finally settling in the red.

The Dow dropped 98.63 points or 0.30 percent to finish at 32,899.37, while the NASDAQ tumbled 173.04 points or 1.40 percent to end at 12,144.66 and the S&P 500 sank 23.53 points or 0.57 percent to close at 4,123.34. For the week, the NASDAQ slumped 1.5 percent and the Dow and the S&P both eased 0.2 percent.

The lower close on Wall Street followed the closely watched Labor Department report showing stronger than expected job growth in April.

With the report showing continued strength in the labor market, economists predicted the Federal Reserve will now continue with its plans to raise interest rates sharply over the coming months.

Worries about the outlook for interest rates may have weighed on Wall Street along with a continued increase in treasury yields.

Crude oil prices closed higher on Friday, and posted a weekly gain as well, amid worries about supply following the European Union’s decision proposing some of its toughest measures yet against Russia. West Texas Intermediate Crude oil futures for June ended higher by $1.51 or 1.4 percent at $109.77 a barrel. WTI crude futures gained nearly 5 percent in the week.