FX.co ★ South Korea Shares May Bounce Higher Again On Friday

The South Korean stock market broke its three-day winning streak on Thursday, during which it had increased by nearly 65 points or 2.5 percent. The KOSPI, South Korea's main stock index, ended just above the 2,680-point level, and is anticipated to begin optimistically on Friday.

The Asian markets' global forecast is positive due to an enhanced interest rates outlook. The European markets showed mixed results, whereas the U.S. markets displayed growth; the Asian markets are predicted to follow the latter trend.

On Thursday, the KOSPI concluded slightly down, influenced by losses within the finance sector and varied performances among the technology and industrial corporations. The index dropped 8.41 points or 0.31 percent, closing at 2,683.65 after fluctuating between 2,678.84 and 2,692.47. Total volume traded was 342.7 million shares valued at 8.9 trillion won, with 513 companies' stocks falling and 357 rising.

Among the active stocks, Shinhan Financial dropped 1.82 percent, KB Financial tanked 4.37 percent, and Hana Financial gave up 2.90 percent. In contrast, Samsung Electronics rose 0.65 percent, and Samsung SDI increased 2.19 percent, whereas LG Electronics, SK Hynix witnessed slumps of 1.51 and 0.34 percent respectively. The Naver technology conglomerate had a 2.39 percent jump while chemical companies LG Chem and Lotte Chemical recorded 0.62 percent gain and 0.74 percent loss respectively.

The U.S. Wall Street's impact is potent as major averages started off stronger on Thursday and further improved throughout the day, concluding near the day’s peak. The Dow swelled 322.37 points or 0.85 percent to close at 38,225.66, whereas the NASDAQ escalated 235.48 points or 1.51 percent to close at 15,840.96, and the S&P 500 advanced 45.81 points or 0.91 percent to end at 5,064.20.

This surge on Wall Street came after traders welcomed the Federal Reserve's monetary policy announcement. Earlier fears that the Fed could introduce an interest rate hike were quelled by Chair Jerome Powell's post-meeting statements.

Stock volatility emerged early in the day, driven by the latest batch of U.S. economic data: a Labor Department report indicated a labor cost surge in the 2024 first quarter and unchanged jobless claims last week. A Commerce Department report revealed a minor contraction in the U.S. trade deficit in March.

Despite early gains, oil futures fell slightly lower on Thursday due to diminishing concerns about supply disruptions and uncertainties about economic growth and energy demand prospects. Consequently, West Texas Intermediate Crude oil futures for June ended down by $0.05 at $78.95 per barrel.