Tech Shares Likely To Boost South Korea Stock Market

The South Korea stock market has moved lower in back-to-back sessions, sinking almost 15 points or 0.6 percent along the way. The KOSPI now rests just beneath the 2,555-point plateau although it may find traction on Friday.

The global forecast is murky, with support from technology stocks likely offset by concern over the ongoing U.S. debt ceiling situation. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KOSPI finished modestly lower on Thursday following losses from the financial shares and the industrials, while the technology stocks came in mixed.

For the day, the index lost 12.76 points or 0.50 percent to finish at 2,554.69 after trading between 2,551.49 and 2,575.05. Volume was 903.89 million shares worth 9.27 trillion won. There were 681 decliners and 182 gainers.

Among the actives, Shinhan Financial declined 1.13 percent, while KB Financial surrendered 2.03 percent, Hana Financial slumped 1.44 percent, Samsung Electronics added 0.44 percent, Samsung SDI tumbled 1.96 percent, LG Electronics lost 0.62 percent, SK Hynix surged 5.94 percent, Naver jumped 1.48 percent, LG Chem skidded 1.11 percent, Lotte Chemical plunged 2.70 percent, S-Oil sank 0.93 percent, SK Innovation climbed 1.03 percent, POSCO retreated 1.62 percent, SK Telecom shed 0.60 percent, KEPCO dropped 0.92 percent, Hyundai Mobis stumbled 1.30 percent, Hyundai Motor tanked 1.93 percent and Kia Motors plummeted 2.24 percent.

The lead from Wall Street is inconsistent as the major averages opened mixed on Thursday and finished the same way.

The Dow shed 35.27 points or 0.11 percent to finish at 32,764.65, while the NASDAQ surged 213.93 points or 1.71 percent to end at 12,698.09 and the S&P 500 gained 36/04 points or 0.88 percent to close at 4,151.28.

The rebound on Wall Street reflected strong earnings news from Nvidia (NVDA), which reported better than expected results and forecasting Q2 revenue well above estimates – resulting in a surge by the Philadelphia Semiconductor Index.

Traders also kept an eye on any developments in the U.S. debt ceiling negotiations amid lingering concerns about a potential default. Reflecting the default concerns, Fitch Ratings placed the United States “AAA” credit on “rating watch negative,” signaling downside risks to U.S. creditworthiness.

In economic news, a revision from the Commerce Department showed economic growth in the U.S. slowed less than estimated in the first quarter of 2023. Also, the Labor Department showed a modest increase in first-time claims for U.S. unemployment benefits last week.

Crude oil prices fell sharply Thursday, snapping a three-day winning streak, after Russia’s Deputy Prime Minister said Russia won’t agree on any additional cut in crude production. West Texas Intermediate Crude oil futures for July ended down $2.51 or 3.4 percent at $71.83 a barrel.