South Korea Bourse Expected To Extend Losing Streak

The South Korea stock market has moved lower in back-to-back sessions, tumbling more than 80 points or 3.8 percent along the way. The KOSPI now sits just shy of the 2,300-point plateau and it’s tipped to open under pressure again on Friday.

The global forecast for the Asian markets is negative as disappointing earnings news and concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to open in similar fashion.

The KOSPI finished sharply lower on Thursday with damage across the board, especially among the financials, technology stocks and industrials.

For the day, the index plunged 64.06 points or 2.71 percent to finish at 2,299.08. Volume was 520 million shares worth 9 trillion won. There were 833 decliners and 79 gainers.

Among the actives, Shinhan Financial fell 0.85 percent, while KB Financial surrendered 2.02 percent, Hana Financial weakened 1.76 percent, Samsung Electronics tumbled 1.91 percent, Samsung SDI tanked 5.05 percent, LG Electronics was down 2.95 percent, SK Hynix plunged 5.88 percent, Naver retreated 3.81 percent, LG Chem plummeted 6.99 percent, Lotte Chemical lost 2.95 percent, S-Oil slumped 1.58 percent, SK Innovation crashed 6.24 percent, POSCO stumbled 5.39 percent, SK Telecom dropped 0.91 percent, KEPCO skidded 0.97 percent, Hyundai Mobis slid 2.26 percent, Hyundai Motor declined 1.37 percent and Kia Motors shed 1.22 percent.

The lead from Wall Street is bleak as the major averages opened mixed on Thursday but quickly turned lower and finished at session lows.

The Dow dropped 251.63 points or 0.76 percent to finish at 32,784.30, while the NASDAQ stumbled 225.62 points or 1.76 percent to close at 12,595.61 and the S&O 500 sank 49.54 points or 1.18 percent to end at 4,137.23.

The weakness on Wall Street followed the release of a slew of largely upbeat U.S. economic data, including a Commerce Department report showing GDP soared by more than expected in the third quarter of 2023.

The resilience of the U.S. economy added to recent concerns about the Federal Reserve leaving interest rates higher for longer than investors had hoped.

In other economic news, the Commerce Department said new orders for U.S. manufactured durable goods spiked more than expected in September. Also, the Labor Department said first-time claims for U.S. unemployment benefits edged higher last week.

Oil prices fell to a two-week low on Thursday as diplomatic efforts to stop Israel from a ground invasion of Gaza helped ease concerns about oil supplies. Recent data showing a surge in U.S. crude inventories, and concerns about interest rates also weighed on oil prices. West Texas Intermediate Crude oil futures for December sank $2.18 or 2.6 percent at $83.21 a barrel.