FX.co ★ South Korea Shares May Bounce Higher On Monday

On Friday, the South Korea stock market concluded a three-day rally, falling by almost 35 points or 1.2 percent. The KOSPI index now rests just below the 2,860-mark, yet it is anticipated to find renewed support as trading resumes on Monday.

The global outlook for Asian markets is positive, expected to benefit from bargain hunting in the technology sector. The gains seen in European and U.S. markets are predicted to influence the Asian bourses positively.

On Friday, the KOSPI closed significantly lower, driven by losses across the technology and automobile sectors, although the financials and chemicals sectors provided some mild support.

The index dropped 34.35 points or 1.19 percent to end the session at 2,857.00, after fluctuating between 2,844.88 and 2,872.25. Trading volume reached 399 million shares, valued at 13.7 trillion won, with 430 stocks declining and 426 gaining.

Among notable movements, Shinhan Financial increased by 0.77 percent, while KB Financial surged by 1.87 percent, and Hana Financial gained 0.65 percent. In contrast, Samsung Electronics tumbled by 3.65 percent, Samsung SDI fell 2.44 percent, LG Electronics slipped 1.44 percent, SK Hynix declined 3.32 percent, and Naver decreased by 0.74 percent. LG Chem saw a modest rise of 0.27 percent, Lotte Chemical advanced 0.84 percent, S-Oil edged up 0.15 percent, SK Innovation climbed 0.93 percent, POSCO rose 0.13 percent, KEPCO dropped 0.35 percent, Hyundai Mobis lost 0.42 percent, Hyundai Motor slipped 2.51 percent, Kia Motors fell 0.81 percent, and SK Telecom remained unchanged.

The positive sentiment from Wall Street is expected to carry over, as major U.S. indices opened higher and maintained their gains throughout the session.

The Dow Jones Industrial Average climbed 247.10 points or 0.62 percent to close at 40,000.90. The NASDAQ Composite increased by 115.04 points or 0.63 percent to finish at 18,398.45, and the S&P 500 rose 30.81 points or 0.55 percent, ending at 5,615.35.

For the week, the Dow Jones advanced 1.6 percent, the S&P 500 grew by 0.9 percent, and the NASDAQ inched up by 0.3 percent.

The rebound on Wall Street was driven by traders looking to purchase stocks at relatively lower prices, following a sharp decline on Thursday. This decline partly reflected a rotation out of leading tech stocks like Nvidia (NVDA).

Additionally, traders remained optimistic about future interest rate trends despite the U.S. Labor Department reporting a greater-than-expected rise in producer prices for June.

Oil futures closed lower on Friday, pressured by data showing a significant increase in U.S. producer prices in June. Specifically, West Texas Intermediate Crude oil futures for August settled down $0.41, ending at $82.21 per barrel.