The South Korea stock market headed south again on Friday, one session after it had snapped the four-day losing streak in which it had tumbled more than 170 points or 7 percent. The KOSPI now rests just above the 2,360-point plateau although it's expected to rebound again on Monday.
The global forecast for the Asian markets is firm, with bargain hunting expected after heavy damage last week. The European markets were down and the U.S. bourses were up - and the Asian markets figure to follow the latter lead.
The KOSPI finished sharply lower on Friday following heavy losses from the financials, industrials and technology stocks.
For the day, the index plummeted 43.85 points or 1.82 percent to finish at 2,363.77 after trading between 2,346.73 and 2,372.90.
Among the actives, Shinhan Financial plummeted 3.63 percent, while Woori Bank dropped 2.25 percent, Samsung Electronics tumbled 2.83 percent, LG Electronics was down 3.02 percent, SK hynix shed 0.68 percent, Hyundai Motor plunged 3.73 percent, POSCO lost 2.36 percent, Hyundai Steel retreated 2.23 percent, Hyundai Heavy fell 1.89 percent, Daewoo Shipbuilding plunged 3.96 percent and Korean Air Lines jumped 1.41 percent.
The lead from Wall Street is positive as stocks saw substantial volatility on Friday, showing wild swings before closing sharply higher.
The Dow added 330.44 points or 1.38 percent to 24,190.90, the NASDAQ gained 97.33 points or 1.44 percent to 6,874.49 and the S&P jumped 38.55 points 1.49 percent to 2,619.55. For the week, the NASDAQ plummeted 5.1 percent and the Dow and the S&P both plunged 5.2 percent.
The higher close was due to bargain hunting after steep losses in the previous session dragged the major averages to their lowest closing levels in about two months.
Traders may also have reacted positively to news that lawmakers ended a brief government shutdown with a bill raising spending caps and funding the government until March 23rd.
But the day's volatility came amid lingering concerns about the outlook for interest rates. Recent signs of rising inflation have led to worries that the Federal Reserve may raise rates faster than anticipated.
Crude oil futures plunged Friday, entering correction mode. Rising U.S. production, new oil fields in Nigeria and Angola and a stronger dollar have dented oil prices badly in recent weeks. March WTI oil fell $1.95 or 3.2 percent to $59.20/bbl, the lowest since Dec. 22. Oil prices dropped 10 percent last week.
by RTT Staff Writer
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