South Korea Stock Market May See Renewed Selling Pressure

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(RTTNews) – The South Korea stock market on Friday ended the two-day slide in which it had tumbled almost 70 points or 2.3 percent. The KOSPI now rests just beneath the 2,955-point plateau although it may turn lower again on Monday.

The global forecast for the Asian markets suggests mild consolidation following Friday’s mixed jobs report from the United States. The European markets were mixed and the U.S. bourse were down and the Asian markets figure to split the difference.

The KOSPI finished sharply higher on Friday following gains from the chemical companies and automobile producers, while the financials and technology stocks were mixed.

For the day, the index climbed 34.36 points or 1.18 percent to finish at 2,954.89 after trading between 2,933.10 and 2,959.03. Volume was 535 million shares worth 10.14 trillion won. There were 648 gainers and 207 decliners. Among the actives, Shinhan Financial advanced 0.94 percent, while KB Financial dipped 0.18 percent, Hana Financial collected 0.58 percent, Samsung Electronics spiked 1.82 percent, LG Electronics jumped 1.85 percent, SK Hynix gained 1.60 percent, Naver eased 0.15 percent, Samsung SDI dropped 0.93 percent, LG Chem rallied 4.20 percent, Lotte Chemical surged 6.91 percent, S-Oil soared 5.30 percent, SK Innovation fell 0.20 percent, POSCO perked 0.16 percent, SK Telecom tanked 2.59 percent, KEPCO improved 0.93 percent, Hyundai Motor added 0.47 percent and Kia Motors climbed 1.29 percent.

The lead from Wall Street is soft as the major averages opened lower on Friday and then saw wild swings both ways before finally finishing the session in the red.

The Dow dipped 4.84 points or 0.01 percent to finish at 36,231,66, while the NASDAQ sank 145.00 points or 0.96 percent to end at 14,935.90 and the S&P 500 fell 19.02 points or 0.41 percent to close at 4,677.03. For the week, the NASDAQ plunged 4.5 percent, the S&P slumped 1.9 percent and the Dow dipped 0.3 percent.

The continued pullback on Wall Street followed the release of the Labor Department’s closely watched monthly jobs report. While the report showed much weaker than expected job growth in the month of December, the unemployment rate still fell by more than expected.

Economists have indicated the report is not likely to alter the Fed’s plans to accelerate monetary policy normalization.

Traders subsequently seem concerned the Fed will be raising rates at a time of slowing economic growth as a result of the Omicron variant of the coronavirus.

Crude oil prices drifted lower on Friday, but still finished the week with a strong gain on supply concerns amid escalating unrest in Kazakhstan and outages in Libya. West Texas Intermediate Crude oil futures for February ended down by $0.56 or 0.7 percent at $78.90 a barrel. WTI Crude futures gained 4.9 percent in the week.