FX.co ★ South Korea Shares May Remain Stuck In Neutral On Friday

The South Korean stock market has experienced a decline in the recent two sessions, decreasing nearly 12 points or 0.4 percent. The KOSPI Index now sits just above the 2,745-point level, and could potentially remain stagnant on Friday.

Market forecasts for Asia are currently in a state of flux, due in part to impending key U.S. inflation data. Europe's markets showed a slight increase, while the U.S. market showed minimal change. These mixed results are likely to result in Asian markets straddling the median.

On Thursday, the KOSPI Index experienced a moderate decrease, driven by losses in the technology, energy, chemical, and automotive sectors. The financial sector, however, provided support. The Index dropped by 9.29 points or 0.34 percent to finish at 2,745.82 with trading boundaries between 2,742.68 and 2,756.86. Total volume was 412.5 million shares worth 11.7 trillion won. The market observed 561 decliners against 290 gainers.

Major players experienced varied shifts. Shinhan Financial gained 0.43 percent, while KB Financial increased 1.88 percent. Samsung Electronics rallied 1.25 percent but Samsung SDI shed 0.62 percent. LG Electronics and SK Hynix saw declines of 0.21 percent and 1.66 percent respectively.

On Wall Street, the Dow added 47.29 points or 0.12 percent to finish at 39,807.37, and the S&P 500 rose marginally by 5.86 points or 0.11 percent to end at 5,254.35. The NASDAQ, however, dipped slightly by 20.06 points or 0.12 percent to close at 16,379.46.

Given the impending Commerce Department report on personal income and spending, traders remained cautious about making substantial investments. This report will be significant as it contains data on inflation, which is closely monitored by the Federal Reserve and could impact interest rates.

In other economic news, the Labor Department reported a slight decrease in U.S. unemployment claims last week. They also revealed that the U.S. economy exceeded growth estimates in the fourth quarter of 2023. Additionally, the National Association of Realtors noted a recovery in pending home sales in February.

Lastly, the oil market surged on Thursday due to expected decreased supply levels as a result of OPEC production cuts and ongoing attacks on Russian oil facilities by Ukraine. Similarly, West Texas Intermediate crude oil futures for May rose $1.82 or 2.2 percent to settle at $83.17 a barrel.