South Korea Bourse May Reclaim 2,300-Point Level

(RTTNews) – The South Korea stock market has finished higher in two of three trading days since the end of the two-day slide in which it had plummeted almost 80 points or 3.2 percent. The KOSPI now rests just beneath the 2,280-point plateau and it’s expected to open higher again on Monday.

The global forecast for the Asian markets is upbeat, with technology stocks expected to lead the markets higher amidst bargain hunting. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to follow the latter lead.

The KOSPI finished slightly higher on Friday as gains from the financial shares, technology stocks and oil companies were capped by weakness from the automobile producers.

For the day, the index added 6.09 points or 0.27 percent to finish at 2,278.79 after trading between 2,267.63 and 2,296.36. Volume was 687 million shares worth 9.9 trillion won. There were 530 gainers and 318 decliners.

Among the actives, Shinhan Financial collected 0.55 percent, while KB Financial spiked 2.69 percent, Samsung Electronics rose 0.17 percent, LG Electronics surged 3.80 percent, SK Hynix tumbled 1.66 percent, Samsung SDI added 0.49 percent, LG Chem rallied 2.62 percent, Lotte Chemical skidded 1.01 percent, S-Oil climbed 1.19 percent, SK Innovation jumped 1.44 percent, POSCO soared 3.19 percent, SK Telecom rose 0.22 percent, KEPCO slid 0.25 percent, Hyundai Motor dropped 0.87 percent, Kia Motors sank 1.23 percent and Hana Financial was unchanged.

The lead from Wall Street is positive as stocks showed a lack of direction early Friday but surged in the afternoon to finish solidly higher.

The Dow jumped 358.56 points or 1.34 percent to finish at 27,173.96, while the NASDAQ spiked 241.26 points or 2.26 percent to end at 10,913.56 and the S&P 500 climbed 51.87 points or 1.60 percent to close at 3,298.46. For the week, the Dow fell 1.7 percent, the NASDAQ rose 1.1 percent and the S&P was down 0.6 percent.

The strength that emerged on Wall Street came as technology stocks moved higher, rebounding from recent weakness. Big-name tech stocks like Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) posted significant gains on the day.

Traders also kept an eye on developments in Washington amid reports House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill. The price tag for the bill is $1 trillion less than a stimulus package the House passed back in May but may still be too high for Republicans.

In economic news, the Commerce Department reported a much smaller than expected increase in durable goods orders in August.

Crude oil prices eased on Friday, weighed down by concerns about the outlook for energy demand due to rising coronavirus cases and fresh lockdown measures. West Texas Intermediate Crude oil futures for November ended down $0.06 or 0.2 percent at $40.25 a barrel. WTI Crude oil futures shed 2.6 percent for the week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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