The South Korean stock market has declined over the past two sessions, losing more than 80 points or 3.2%. The KOSPI index currently hovers slightly above the 2,400 mark, although support is anticipated as the market opens on Monday.
Globally, the forecast for Asian markets carries a cautiously optimistic tone, influenced by a more favorable interest rate outlook. While European markets closed lower, the U.S. markets experienced a rise, and it is projected that Asian markets will follow the upward trend observed in the U.S.
On Friday, the KOSPI ended the day with a notable decrease, impacted by declines in financial shares, technology stocks, industrial sectors, and chemical companies. The index dropped by 31.78 points, or 1.30%, closing at 2,404.15. It fluctuated between 2,389.86 and 2,430.69 throughout the session. Trading volume reached 606.4 million shares, valued at 9.12 trillion won, with 703 stocks declining and 204 gaining.
Key performers included Shinhan Financial, down by 1.23%, and KB Financial, which fell by 1.27%. Hana Financial saw a significant drop of 2.74%, Samsung Electronics edged down 0.19%, Samsung SDI decreased by 1.25%, while LG Electronics fell 2.16%. SK Hynix experienced a sharp decline of 3.71%, Naver slightly increased by 0.24%, LG Chem dipped 0.19%, and Lotte Chemical tumbled 3.84%. Conversely, SK Innovation rose 1.04%, while POSCO Holdings declined by 1.33%. Further declines were seen with SK Telecom down 1.75%, KEPCO down by 1.46%, Hyundai Mobis by 2.40%, and Hyundai Motor by 0.71%, while Kia Motors gained 0.60%.
In contrast, Wall Street delivered a positive lead, with major indices opening lower on Friday but rebounding robustly to close in the green. The Dow Jones Industrial Average surged 498.06 points, or 1.18%, to end at 42,840.26. The NASDAQ climbed 199.80 points, or 1.03%, to finish at 19,572.60, while the S&P 500 increased by 63.77 points, or 1.09%, closing at 5,930.85.
For the week, the Dow dropped 2.3%, the S&P 500 declined 2.0%, and the NASDAQ fell 1.8%.
The rally on Wall Street was buoyed by the Commerce Department's report on personal consumption expenditures (PCE), which showed slower-than-expected growth. This report, being the Federal Reserve's preferred indicator of consumer price inflation, encouraged investors to purchase stocks at discounted rates after a mid-week sell-off.
Oil futures also closed higher on Friday as the dollar eased from two-year highs following the soft PCE readings, which alleviated concerns about future interest rate cuts. West Texas Intermediate Crude oil futures rose $0.08, or approximately 0.1%, to $69.46 a barrel. Despite the daily increase, oil futures dropped 2.5% over the week.
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