The South Korea stock market has moved higher in two of three trading days since the end of the two-day slide in which it had fallen almost 25 points or 0.9 percent. The KOSPI now rests just shy of the 2,730-point plateau although it’s expected to see renewed selling pressure again on Friday.
The global forecast for the Asian markets suggests consolidation on growing concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.
The KOSPI finished modestly higher on Thursday following gains from the financials, technology stocks and steel companies.
For the day, the index improved 9.52 points or 0.35 percent to finish at 2,728.21 after trading between 2,725.04 and 2,737.54. Volume was 1.002 billion shares worth 9.87 trillion won. There were 443 gainers and 400 decliners.
Among the actives, Shinhan Financial advanced 0.98 percent, while KB Financial collected 0.50 percent, Hana Financial gained 0.63 percent, Samsung Electronics added 0.45 percent, Samsung SDI was up 0.49 percent, LG Electronics perked 1.21 percent, SK Hynix rose 0.44 percent, Naver tumbled 1.90 percent, LG Chem sank 0.40 percent, Lotte Chemical strengthened 1.29 percent, SK Innovation gathered 0.46 percent, POSCO soared 3.28 percent, SK Telecom climbed 1.14 percent, KEPCO jumped 1.88 percent, Kia Motors fell 0.25 percent and S-Oil and Hyundai Motor were unchanged.
The lead from Wall Street is negative as the major averages were unable to hold early gains on Thursday, accelerating into the red as the day progressed.
The Dow tumbled 368.03 points or 1.05 percent to finish at 34,792.76, while the NASDAQ dropped 278.41 points or 2.07 percent to close at 13,174.41 and the S&P 500 sank 65.79 points or 1.48 percent to end at 4,393.66.
The sharp pullback on Wall Street came as Treasury yields showed a notable move back to the upside after falling on Wednesday. The yield on the benchmark ten-year note more than offset yesterday’s drop, reaching its highest closing level since December 2018.
Concerns about the outlook for interest rates contributed to the rebound by Treasury yields after Federal Reserve Chair Jerome Powell told the International Monetary Fund that it would be appropriate to raise rates “a little more quickly” and predicted a 50 basis point rate hike would be on the table at the Fed’s May meeting.
Early in the session, stocks benefited from some upbeat earnings news from the likes of Tesla (TSLA), American Airlines (AAL) and United Airlines (UAL).
In economic news, the Labor Department noted a slight decrease in first-time claims for U.S. unemployment benefits last week. Also, the Federal Reserve Bank of Philadelphia said growth in Philadelphia-area manufacturing activity slowed more than expected in April.
Crude oil prices climbed higher Thursday, extending gains from the previous session amid concerns about global crude supply and strong demand in the U.S. West Texas Intermediate Crude oil futures for June ended higher by $1.60 or 1.6 percent at $103.79 a barrel.
Market Analysis
South Korea Stock Market May Hand Back Thursday’s Gains
2022-04-21 23:02:23
