South Korea Bourse May Snap Losing Streak

The South Korea stock market has finished lower in two straight sessions, sinking more than 60 points or 3 percent along the way. The KOSPI now rests just above the 2,130-point plateau although it may find traction on Monday.

The global forecast for the Asian markets suggests a higher open on bargain hunting, although an increase in Covid-19 cases may limit the upside. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The KOSPI finished sharply lower on Friday following losses from the financial shares, technology stocks and industrial issues.

For the day, the index tumbled 44.48 points or 2.04 percent to finish at 2,132.30 after trading between 2,084.63 and 2,137.12. Volume was 81.3 million shares worth 14.7 trillion won. There were 720 decliners and 160 gainers.

Among the actives, Shinhan Financial tanked 4.15 percent, while KB Financial plummeted 4.68 percent, Hana Financial surrendered 4.14 percent, Samsung Electronics tumbled 3.73 percent, LG Electronics dropped 1.74 percent, LG Display fell 4.12 percent, SK Hynix slid 3.73 percent, S-Oil shed 3.09 percent, SK Innovation lost 4.56 percent, Lotte Chemical was down 4.08 percent, POSCO declined 3.62 percent, SK Telecom sank 3.02 percent, KEPCO dropped 2.98 percent, Hyundai Motors plunged 4.61 percent and Kia Motors retreated 1.96 percent.

The lead from Wall Street is positive as stocks moved sharply higher on Friday, recovering from heavy selling a day earlier.

The Dow jumped 477.34 points or 1.90 percent to finish at 25,605.54, while the NASDAQ advanced 96.08 points or 1.01 percent to end at 9,588.81 and the S&P 500 climbed 39.21 points or 1.31 percent to close at 3,041.31. For the week, the Dow shed 5.6 percent, the NASDAQ lost 2.3 percent and the S&P fell 4.8 percent.

Bargain hunting contributed to the strength on Wall Street as traders looked to pick up stocks at relatively reduced levels. The steep drop on Thursday marked the worst day for the markets since the sell-off seen as worries about the coronavirus began to escalate in March.

Adding to the positive sentiment, the University of Michigan noted a continued rebound in U.S. consumer sentiment in June. Also, the Labor Department reported a bigger than expected jump in U.S. import prices in May.

Crude oil futures settled lower on Friday for their first weekly loss in seven weeks as uncertainty about energy demand amid worries about the global growth outlook weighed. West Texas Intermediate Crude oil futures ended down $0.08 or 0.2 percent at $36.26 a barrel.