Overbought KOSPI Nonetheless Called Higher On Friday

(RTTNews) - The South Korea stock market has moved higher in eight straight sessions, surging more than 200 points or 6.3 percent along the way. Now at a fresh record closing high, the KOSPI sits just beneath the 3,350-point plateau and it's expected to at least open in the green again on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The KOSPI finished modestly higher again on Thursday on gains from the financials, technology stocks and automobile producers, while the chemical companies were soft.

For the day, the index climbed 29.67 points or 0.90 percent to finish at 3,344.20 after trading between 3,311.86 and 3,344.70. Volume was 430.3 million shares worth 14.7 trillion won. There were 462 gainers and 403 decliners.

Among the actives, Shinhan Financial collected 0.44 percent, while Hana Financial added 0.69 percent, Samsung Electronics climbed 1.10 percent, Samsung SDI improved 0.84 percent, LG Electronics perked 0.13 percent, SK Hynix advanced 0.90 percent, Naver fell 0.21 percent, LG Chem was up 0.07 percent, Lotte Chemical sank 0.75 percent, SK Innovation jumped 1.88 percent, POSCO Holdings dropped 0.88 percent, SK Telecom gathered 0.18 percent, KEPCO stumbled 2.97 percent, Hyundai Mobis slumped 0.94 percent, Hyundai Motor accelerated 1.13 percent, Kia Motors gained 0.57 percent and KB Financial was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Thursday and remained in the green throughout the trading day.

The Dow surged 617.08 points or 1.36 percent to finish at 46,108.00, while the NASDAQ rallied 157.01 points or 0.72 percent to end at 22,043.07 and the S&P 500 gained 55.43 points or 0.85 percent to close at 6,587.47.

The strength on Wall Street came amid a positive reaction to separate Labor Department reports on consumer price inflation and weekly jobless claims, further boosting the chances of a rate cut.

A closely watched Labor Department report showed U.S. consumer prices rose by slightly more than expected in August. Also, first-time claims for U.S. unemployment benefits unexpectedly increased last week.

Following the reports, CME Group's FedWatch Tool is currently indicating 94.8 percent chance the Federal Reserve will lower rates by a quarter-point next week and a slim 5.2 percent chance of a half- point rate cut.

Crude oil prices fell sharply on Thursday, triggered by the International Energy Agency's monthly report that boosted the supply estimate for 2025 and 2026, indicating a glut. West Texas Intermediate crude for October delivery sank $1.22 or 1.92 percent at $62.45 per barrel.