Rebound Predicted For South Korea Stock Market

The South Korea stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had climbed more than 55 points or 2.1 percent. The KOSPI now rests just above the 2,610-point plateau although it’s expected to bounce higher again on Friday.

The global forecast for the Asian markets is broadly positive, with support expected from the technology, retail, oil and airline stocks. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The KOSPI finished slightly lower on Thursday as losses from the technology stocks were mitigated by gains from the oil companies and mixed performances from the financials and industrials.

For the day, the index dipped 4.77 points or 0.18 percent to finish at 2,612.45 after trading between 2,602.01 and 2,641.91. Volume was 583.60 million shares worth 8.48 trillion won. There were 422 decliners and 395 gainers.

Among the actives, KB Financial lost 0.67 percent, while Hana Financial collected 0.73 percent, Samsung Electronics shed 0.75 percent, Samsung SDI slumped 1.02 percent, LG Electronics lost 0.49 percent, SK Hynix plunged 4.63 percent, Lotte Chemical added 0.77 percent, S-Oil improved 0.95 percent, SK Innovation gained 0.98 percent, POSCO climbed 1.20 percent, SK Telecom strengthened 1.06 percent, KEPCO advanced 0.85 percent, Hyundai Motor rose 0.27 percent, Kia Motors fell 0.24 percent and Shinhan Financial, LG Chem and Naver were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Thursday and picked up steam ad the day progressed, finishing near session highs.

The Dow spiked 516.91 points or 1.61 percent to finish at 32,637.10, while the NASDAQ surged 305..91 points or 2.68 percent to end at 11,740.65 and the S&P 500 jumped 79.11 points or 1.99 percent to close at 4,057.84.

The strength on Wall Street came as traders continued to pick up stocks at relatively reduced levels following recent weakness.

Adding to the positive sentiment, the Labor Department reported that first-time claims for U.S. unemployment benefits pulled back by more than expected last week.

In other economic news, the Commerce Department said economic activity in the U.S. slumped slightly more than estimated in the first quarter of 2022. Also, the National Association of Realtors said pending home sales plummeted by much more than expected in April.

Crude oil prices rose sharply on Thursday amid increasing signs of tight supply in the market ahead of the peak U.S. driving season that kicks off next week. A weak dollar and the possibility of EU sanctions on Russian oil also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures for July ended higher by $3.76 or 3.4 percent at $114.09 a barrel.