FX.co ★ Tech Shares May Boost South Korea Stock Market

The stock market in South Korea has been fluctuating between gains and losses over the past week, following a four-day losing streak when it fell close to 125 points, or 4.6 percent. Currently, the KOSPI index is just above the 2,655-point plateau and there are indications it could see further gains.

Aspects contributing to a positive global forecast for Asian markets include encouraging inflation data, and backing from oil and tech companies. This optimism is reflected in the American and European markets, which ended strongly, and it's predicted Asian markets will follow suit.

The KOSPI ended notably higher last Friday, buoyed by gains from finance, tech, and industrial stocks. The index rose 27.71 points, or 1.05 percent, closing at 2,656.33. On the day, trading volume was 443 million shares, valued at 9.93 trillion won.

Regarding individual stocks, standouts included the Shinhan Financial Group, which surged 7.47 percent, alongside KB Financial Group, which soared 9.67 percent. Other notable movements included an increase of 4.22 percent from SK Hynix, a 1.43 percent decline from Hyundai Mobis and a 1.37 percent rally from Kia Motors.

The lead from Wall Street was significant, with major averages opening higher on Friday and staying in the green for the whole day. The Dow Jones Industrial Average climbed 0.40 percent, the NASDAQ Composite rose 2.02 percent, and the S&P 500 Index increased by 1.02 percent. For the week, the NASDAQ was up by 4.2 percent, the S&P 500 gained 2.7 percent and the Dow Jones added 0.7 percent.

This rally was driven by a positive response to recent earnings announcements from prominent tech companies like Alphabet, Microsoft, and Snap. Market participants also looked favorably on key inflation data from the Commerce Department, which showed consumer prices in the U.S. rising in accordance with March estimates.

The release of the report pushed Treasury bond yields lower, potentially softening any negative response to the inflation data. In other developments, oil prices saw an upward tick last Friday, spurred by optimism regarding oil demand and supply concerns. West Texas Intermediate crude oil futures for June delivery ended the week higher by 0.85 percent at $83.85 a barrel.