FX.co ★ Continued Support Called For South Korea Shares

The South Korean stock market ended its two-day decline on Friday, during which it had dropped nearly 65 points or 2.3 percent. The KOSPI now stands slightly above the 2,720-point mark and may continue its upward trend on Monday.

The global outlook for Asian markets is positive due to an improved perspective on interest rates. Both European and U.S. markets experienced solid gains, and Asian markets are expected to follow suit.

On Friday, the KOSPI recorded modest gains, with financial shares boosting the index, despite weaknesses in the automobile sector and mixed performances in the technology sector. The index rose by 21.25 points, or 0.78 percent, closing at 2,731.90, after fluctuating between 2,715.75 and 2,738.40. Trading volume was 504.7 million shares, valued at 12.8 trillion won. There were 594 advancing stocks and 288 declining ones.

Key performers included Shinhan Financial, which surged 6.42 percent; KB Financial, which soared 4.64 percent; and Hana Financial, which spiked 4.27 percent. Samsung Electronics increased by 0.62 percent, while Samsung SDI dropped by 1.31 percent, and LG Electronics fell by 2.81 percent. SK Hynix advanced 0.95 percent, Naver declined 1.80 percent, and LG Chem tumbled 1.92 percent. Other notable movements included Lotte Chemical, which improved 1.00 percent; S-Oil, which increased 0.30 percent; and SK Innovation, which decreased 0.85 percent. POSCO rose by 0.28 percent, Samsung Heavy surged 8.40 percent, SK Telecom increased 0.18 percent, KEPCO climbed 0.98 percent, Hyundai Motor fell 3.18 percent, Kia Motors tumbled 2.52 percent, and Hyundai Mobis remained unchanged.

The sentiment from Wall Street was broadly positive, with major averages opening higher on Friday and sustaining gains throughout the trading day. The Dow surged 654.27 points, or 1.64 percent, to close at 40,589.34. The NASDAQ rallied by 176.16 points, or 1.03 percent, and the S&P 500 gained 59.88 points, or 1.11 percent.

For the week, the Dow added 0.8 percent, whereas the NASDAQ declined by 2.1 percent and the S&P 500 fell by 0.8 percent.

Wall Street's strength was bolstered by the release of closely watched inflation data from the Commerce Department, which added to confidence about a potential interest rate cut by the Federal Reserve in September. Additionally, the University of Michigan reported revised data indicating that U.S. consumer sentiment deteriorated less than previously estimated in July.

Oil prices fell on Friday, driven by concerns over demand due to the economic slowdown in China and hopes for a ceasefire in Gaza. West Texas Intermediate (WTI) Crude oil futures for September ended down $1.12, or 1.4 percent, at $77.16 a barrel, marking a 1.9 percent decline for the week.