On Friday, the South Korean stock market concluded a five-day winning streak, during which the KOSPI index surged over 120 points, equivalent to a 4.8% increase. The index currently hovers just above the 2,515 mark, and it appears that losses may deepen as trading resumes on Monday.
The global market forecast for Asian equities is predominantly negative, influenced by robust U.S. employment data that has significantly impacted interest rate expectations. Both European and U.S. markets closed sharply lower, and Asian markets are anticipated to follow this downward trend at their opening.
The KOSPI marginally declined due to profit-taking activities in the technology and chemical sectors, although it received some offsets from gains in financials and industrial sectors. On the day, the KOSPI dropped by 6.12 points or 0.24%, ending at 2,515.78. A total of 365.58 million shares were traded, with a value of 9.43 trillion won. The market witnessed 462 gainers and 406 decliners.
Notable market movements included: Shinhan Financial rising by 0.71%, KB Financial increasing by 1.27%, and Hana Financial inching up by 0.17%. In contrast, Samsung Electronics fell by 1.43%, Samsung SDI slid by 1.10%, and SK Hynix decreased by 0.73%. LG Chem declined by 1.61%, Lotte Chemical lost 2.33%, and SK Innovation dropped 2.20%. However, POSCO Holdings increased by 0.38%, SK Telecom added 0.54%, KEPCO rose by 0.49%, Hyundai Mobis ascended by 1.78%, Hyundai Motor surged by 6.10%, Kia Motors advanced by 2.23%, and LG Electronics remained steady.
Wall Street's outlook is currently pessimistic, as major indices opened sharply lower on Friday and maintained this downward trajectory throughout the session. The Dow Jones Industrial Average plummeted by 696.75 points or 1.63%, closing at 41,938.45. The NASDAQ Composite fell by 317.27 points or 1.63%, ending at 19,161.63, and the S&P 500 dropped by 91.21 points or 1.54%, closing at 5,827.04.
This downturn in Wall Street can be attributed to strong non-farm payroll data, sparking concerns that the Federal Reserve may maintain current interest rate levels or reduce the pace of rate cuts. Although the report underscores labor market resilience, it is anticipated to bolster the Federal Reserve's strategy of cautiously reducing interest rates over the upcoming year.
In the commodities market, oil prices experienced a sharp increase on Friday. This rise followed the Biden Administration's announcement of additional sanctions on Russia's oil exports. West Texas Intermediate Crude oil futures for February rose by $2.65, or 3.6%, settling at $76.57 per barrel—the highest in three months.
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