South Korea Stocks Likely To Open Under Pressure

The South Korea stock market on Thursday ended the two-day winning streak in which it had advanced more than 30 points or 1.2 percent. The KOSPI now rests just above the 2,590-point plateau and it may extend its losses on Friday.

The global forecast for the Asian markets is negative, with selling pressure expected among the technology, transportation and tobacco stocks. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The KOSPI finished sharply lower on Thursday following losses from the financial shares, technology stocks, oil companies and industrials.

For the day, the index slumped 33.64 points or 1.28 percent to finish at 2,592.34 after trading between 2,568.54 and 2,597.79. Volume was 663 million shares worth 9.7 trillion won. There were 767 decliners and 124 gainers.

Among the actives, Shinhan Financial plunged 3.21 percent, while KB Financial stumbled 2.24 percent, Hana Financial retreated 1.95 percent, Samsung Electronics dropped 0.88 percent, LG Electronics cratered 5.14 percent, SK Hynix tanked 2.20 percent, Naver declined 1.81 percent, LG Chem tumbled 1.95 percent, Lotte Chemical advanced 0.77 percent, S-Oil sank 2.73 percent, SK Innovation lost 1.92 percent, POSCO skidded 1.04 percent, SK Telecom weakened 1.70 percent, KEPCO dipped 0.22 percent, Hyundai Motor surrendered 1.89 percent and Kia Motors shed 2.84 percent.

The lead from Wall Street is soft as the major averages opened mixed on Thursday before finally turning lower for good and finishing in the red.

The Dow plummeted 236.94 points or 0.75 percent to finish at 31,253.13, while the NASDAQ shed 29.66 points or 0.26 percent to close at 11,388.50 and the S&P 500 sank 22.89 points or 0.58 percent to end at 3,900.79.

The volatility on the day came as traders continued to debate when the markets will reach a bottom, with the S&P 500 closing in on bear market territory.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits unexpectedly increased last week, while the National Association of Realtors said existing home sales slumped in April. Also, the Federal Reserve Bank of Philadelphia noted a slowdown in in regional manufacturing activity.

Crude oil prices rallied sharply on Thursday amid expectations of a pickup in energy demand on reports Chinese officials are planning to ease restrictions in Shanghai. The dollar’s weakness also contributed significantly to the rise in oil prices. West Texas Intermediate Crude oil futures for June ended higher by $2.62 or 2.4 percent at $112.21 a barrel.