The South Korea stock market has faced a slight downturn, experiencing losses on two of the last three trading days after an impressive 11-day rally, during which the KOSPI soared over 300 points, equating to a gain of 9.6 percent. Currently, the KOSPI index hovers just above the 3,440-point mark, and analysts speculate a potential uptick as early as Monday.
Global market sentiment presents a mixed to positive outlook, fueled by ongoing optimism regarding interest rate developments. While European markets saw slight declines, U.S. exchanges performed robustly, closing higher and contributing to a broader sense of cautious optimism across Asian markets.
On Friday, the KOSPI index ended the day modestly lower, influenced by profit-taking actions predominantly in the technology, chemical, and automobile sectors, with financial stocks showing varied results. The index fell by 16.06 points, or 0.46 percent, to finish at 3,445.24, after trading within a range of 3,434.61 to 3,467.89. The trading volume reached 339.5 million shares, valued at 14.18 trillion won, marking a session where 635 stocks closed down while 242 gained.
Prominent among individual shares, Shinhan Financial rose by 1.16%, contrasting with KB Financial’s decline of 0.77%. Other notable performances included mixed results for major tech and industrial players: Samsung Electronics dropped 0.99%, while Samsung SDI fell sharply by 2.53%. LG Electronics suffered a significant 3.77% decline, and various other sectors faced losses, including LG Chem down 3.32% and SK Innovation down 2.53%. Notably, Hyundai Mobis plummeted by 2.84%, while Kia Motors edged down by 0.49%.
In the U.S., stock markets closed the week on a high note, with major averages reaching fresh record levels. The Dow added 172.85 points, or 0.37%, settling at 46,315.27. The NASDAQ advanced by 160.75 points, or 0.72%, to close at 22,631.48, while the S&P 500 improved by 32.40 points, or 0.49%, wrapping up at 6,664.36. Throughout the week, the NASDAQ surged 2.2%, with the S&P 500 and Dow gaining 1.2% and 1.1%, respectively.
The positive momentum on Wall Street has been partially attributed to hopes for lower interest rates, following the Federal Reserve’s recent decision to cut rates by a quarter point. The Fed also indicated potential for two additional cuts later this year, fueling investor optimism. However, overall trading activity was somewhat muted, attributed to the absence of significant U.S. economic data, which left some traders cautious and on the sidelines.
Commodity markets reflected wariness as crude oil prices declined, with traders assessing the Federal Reserve’s cautious messages regarding the economy. The price of West Texas Intermediate crude for October delivery fell by $0.91, or 1.43%, settling at $62.66 per barrel.
