Win Streak May Continue For South Korea Shares

Separated by the Chuseok Thanksgiving holiday, the South Korea stock market has moved higher in three straight sessions, improving more than 65 points or 2.6 percent along the way. The KOSPI now sits just above the 2,580-point plateau and it’s tipped to open in the green again on Friday.

The global forecast for the Asian markets is upbeat on optimism for the outlook for both the economy and for interest rates. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion – although there may be profit taking as the day progresses.

The KOSPI finished slightly higher on Thursday as gains from the industrials and financials were capped by weakness from the chemicals and a mixed picture from the technology stocks.

For the day, the index rose 5.39 points or 0.21 percent to finish at 2,580.80 after trading between 2,550.09 and 2,598.68. Volume was 378.78 million shares worth 12.6 trillion won. There were 497 gainers and 371 decliners.

Among the actives, Shinhan Financial jumped 1.79 percent, while KB Financial collected 0.86 percent, Hana Financial strengthened 1.48 percent, Samsung Electronics slumped 2.02 percent, Samsung SDI soared 1.92 percent, LG Electronics skyrocketed 4.89 percent, SK Hynix plummeted 6.14 percent, Naver rose 0.31 percent, LG Chem shed 0.62 percent, Lotte Chemical tumbled 1.74 percent, S-Oil spiked 2.35 percent, SK Innovation accelerated 1.81 percent, POSCO rallied 1.49 percent, SK Telecom perked 0.17 percent, Hyundai Mobis and KEPCO both slipped 0.22 percent, Hyundai Motor surged 3.80 percent and Kia Motors improved 2.99 percent.

The lead from Wall Street is broadly positive as the major averages opened solidly higher and remained firmly in the green throughout the session.

The Dow surged 522.09 points or 1.26 percent to finish at 42,025.19, while the NASDAQ rallied 440.68 points or 2.51 percent to end at 18,013.98 and the S&P 500 advanced 95.38 points or 1.70 percent to close at 5,713.64.

The rally on Wall Street came as traders continued to digest the Federal Reserve’s decision on Wednesday to slash interest rates by half of a percentage point.

Fed officials also forecast continued rate cuts over the coming months and into next year, generating optimism the central bank will be able to engineer a soft landing for the economy.

Adding to the optimism about the economy, the Labor Department released a report showing first-time claims for U.S. unemployment benefits fell to a nearly four-month low last week.

Oil prices moved higher on Thursday with rising tensions in the Middle East raising possibility of disruptions in supply. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.5 percent at $71.55 a barrel.