FX.co ★ South Korea Shares May See Renewed Support

The South Korean stock market experienced a pause in its recent upward trend on Thursday, ending a two-day surge that had seen an increase of over 125 points, or 5%. The KOSPI index currently stands at just above 2,555 points, with expectations of a rebound on Friday.

Global trends suggest a positive outlook for Asian markets, driven by diminished concerns regarding the health of the United States economy. While European markets showed mixed and marginal changes, the U.S. markets saw significant gains, a trend likely to be mirrored by Asian markets.

On Thursday, the KOSPI closed slightly lower, with losses from the chemical and technology sectors partially offset by gains in the financial sector. The index dropped 11.68 points, or 0.45%, to close at 2,556.73, with trading ranges between 2,518.52 and 2,570.34. The volume reached 477.7 million shares, valuing at 11.2 trillion won. Decliners outnumbered gainers, 464 to 423.

In active trading, Shinhan Financial advanced by 0.93%, KB Financial rose by 0.74%, and Hana Financial increased by 0.34%. Conversely, Samsung Electronics fell by 1.74%, Samsung SDI plunged by 4.11%, and LG Electronics decreased by 0.63%. SK Hynix dropped by 3.48%, LG Chem by 4.66%, and Lotte Chemical by 2.83%. Meanwhile, S-Oil added 0.46%, SK Innovation fell by 0.31%, POSCO stumbled by 2.15%, SK Telecom declined by 0.73%, and KEPCO retreated by 1.54%. Hyundai Mobis improved by 0.94%, Hyundai Motor saw a modest increase of 0.21%, while Kia Motors and Naver remained unchanged.

Wall Street provided a broadly positive lead, with major indices opening higher and maintaining upward momentum throughout the day, closing near their session highs.

The Dow Jones Industrial Average surged 683.04 points, or 1.76%, to 39,446.49. The NASDAQ Composite rallied 464.22 points, or 2.87%, ending at 16,660.02. The S&P 500 jumped 119.81 points, or 2.30%, to close at 5,319.31.

The rally was bolstered by a report from the Labor Department indicating that first-time claims for U.S. unemployment benefits had decreased more than expected, alleviating concerns over the labor market that had previously fueled selling on Wall Street.

In corporate news, Under Armour (UAA) and Eli Lilly (LLY) saw their stocks rise following strong results, while Warner Brothers Discovery (WBD) declined after reporting weaker figures.

Oil futures ended higher on Thursday due to potential supply disruptions from Middle East tensions and anticipated increased demand in the U.S. West Texas Intermediate Crude oil futures for September rose by $0.96, or 1.28%, to $76.19 a barrel.