Continued Consolidation Called For KOSPI

(RTTNews) - The South Korea stock market has finished lower in two straight sessions, stumbling more than 85 points or 3.5 percent in that span. The KOSPI now sits just above the 2,375-point plateau and it may take further damage on Monday.

The global forecast for the Asian markets is broadly negative on rising bond yields and their effect on the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The KOSPI finished sharply lower on Friday with damage across the board, especially among the chemicals, technology stocks and industrials.

For the day, the index retreated 40.80 points or 1.69 percent to finish at 2,375.00 after trading between 2,364.01 and 2,394.67. Volume was 507.2 million shares worth 8.8 trillion won. There were 757 decliners and 135 gainers.

Among the actives, KB Financial shed 0.70 percent, while Hana Financial and SK Telecom both lost 0.80 percent, Samsung Electronics skidded 1.01 percent, Samsung SDI surrendered 2.83 percent, LG Electronics sank 0.75 percent, SK Hynix added 0.40 percent, Naver fell 0.66 percent, LG Chem plunged 3.04 percent, Lotte Chemical tanked 2.62 percent, S-Oil retreated 1.26 percent, SK Innovation dropped 2.08 percent, POSCO plummeted 5.03 percent, KEPCO slumped 1.12 percent, Hyundai Mobis tumbled 3.11 percent, Hyundai Motor surrendered 2,86 percent, Kia Motors declined 2.85 percent and Shinhan Financial was unchanged.

The lead from Wall Street is weak as the major averages opened lower and spent the entire day firmly in the red, ending at session lows.

The Dow dropped 286.89 points or 0.86 percent to finish at 33,127.28, while the NASDAQ slumped 202.37 points or 1.53 percent to close at 12,983.81 and the S&P 500 sank 53.84 points or 1.26 percent to end at 4,224.16.

For the week, the NASDAQ dropped 3.2 percent, the S&P 500 dove 2.4 percent and the Dow tumbled 1.6 percent.

The continued weakness on Wall Street came amid ongoing concerns about the recent surge in treasury yields to 16-year highs. Overnight, the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

Fears the Israel-Hamas war may escalate into a broader regional crisis also contributed to the negative sentiment on Wall Street.

Crude oil prices couldn't hold on to early gains, slumping on demand concerns amid fears the Israel-Hamas war may escalate into a broader regional crisis. West Texas Intermediate for November delivery, which expired Friday, fell $0.62 or 0.7 percent at $88.75 a barrel. The more active December futures slipped $0.29 or 0.3 percent to $88.08 a barrel.