Continued Consolidation Called For South Korea Shares

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last six trading days since the end of the four-day losing streak in which it had plunged almost 125 points or 4.6 percent. The KOSPI now sits just beneath the 2,630-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets is sift on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KOSPI finished sharply lower on Thursday following losses from the technology and chemical companies, while the financials offered mild support and the automobile producers were mixed.

For the day, the index tumbled 47.13 points or 1.76 percent to finish at the daily low of 2,628.62 after peaking at 2,656.51. Volume was 304 million shares worth 8.72 trillion won. There were 487 decliners and 360 gainers.

Among the actives, Shinhan Financial added 0.46 percent, while KB Financial collected 0.58 percent, Hana Financial perked 0.18 percent, Samsung Electronics surrendered 2.93 percent, Samsung SDI retreated 2.01 percent, LG Electronics slumped 1.74 percent, SK Hynix plunged 5.12 percent, Naver shed 0.54 percent, LG Chem tumbled 2.23 percent, Lotte Chemical increased 0.30 percent, S-Oil skidded 1.17 percent, SK Innovation stumbled 2.27 percent, POSCO sank 0.88 percent, SK Telecom dipped 0.20 percent, Hyundai Mobis gathered 0.21 percent, Hyundai Motor dropped 0.99 percent, Kia Motors rose 0.34 percent and KEPCO was unchanged.

The lead from Wall Street is negative as the major averages opened lower on Thursday and remained solidly in the red throughout the session.

The Dow plunged 375.12 points or 0.98 percent to finish at 38,085.80, while the NASDAQ tumbled 100.99 points or 0.64 percent to close at 15,611.76 and the S&P 500 sank 23.21 points or 0.46 percent to end at 5,048.42.

A negative reaction to earnings news from Meta Platforms (META) and tech giant IBM Corp. (IBM) contributed to the early sell-off on Wall Street.

In economic news, the Commerce Department released a report showing the U.S. economy grew by much less than expected in the first quarter of 2024. Also, the Commerce Department said the personal consumption expenditures price index climbed more than expected.

Both of those economic results were bad news for investors as they damage the likelihood of an interest rate cut by the Federal Reserve in the near future.

Crude oil futures settled higher on Thursday, recovering from recent losses, despite data showing slower than expected U.S. first-quarter GDP growth. West Texas Intermediate Crude oil futures for June ended higher by $0.76 or about 0.92% at $83.57 a barrel.