Additional Support Anticipated For South Korea Shares

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last six trading days since the end of the three-day winning streak in which it had risen just 8 points or 0.3 percent. The KOSPI now sits just above the 2,705-point plateau and it may add to its winnings on Friday.

The global forecast for the Asian markets is cautiously optimistic thanks to easing Treasury yields. The European markets were down and the U.S. bourses were mostly higher and the Asian markets are tipped to follow the latter lead.

The KOSPI finished slightly higher on Thursday as gains from the automobile producers were offset by weakness from the financials and chemicals and a mixed picture from the technology stocks.

For the day, the index added 1.80 points or 0.07 percent to finish at 2,706.96 after trading between 2,661.92 and 2,718.07. Volume was 522.4 million shares worth 12.5 trillion won. There were 606 decliners and 270 gainers.

Among the actives, Shinhan Financial and LG Chem both skidded 1.15 percent, while KB Financial and SK Telecom both slumped 1.16 percent, Hana Financial eased 0.17 percent, Samsung Electronics added 0.60 percent, Samsung SDI sank 0.85 percent, LG Electronics perked 0.21 percent, SK Hynix soared 3.01 percent, Naver stumbled 2.86 percent, Lotte Chemical plunged 3.53 percent, S-Oil advanced 0.98 percent, SK Innovation surrendered 2.99 percent, POSCO dropped 0.87 percent, KEPCO plummeted 3.84 percent, Hyundai Mobis rallied 3.29 percent, Hyundai Motor surged 5.70 percent and Kia Motors accelerated 3.43 percent.

The lead from Wall Street is fairly positive as the major averages shook off early weakness and climbed well into the green, although the Dow failed late and ended in the red.

The Dow eased 2.43 points or 0.01 percent to finish at 38,459.08, while the NASDAQ surged 271.84 points or 1.68 percent to end at 16,442.20 and the S&P 500 added 38.42 points or 0.74 percent to close at 5,199.06.

The rally by the NASDAQ and S&P 500 seemed to coincide with the release of the results of the Treasury Department's auction of $22 billion worth of 30-year bonds, which saw average demand.

Treasury yields pulled back off their highs following the release of the results, with the yield on the benchmark 10-year note giving ground. The Treasury revealed below average demand for this month's three-year and 10-year note auctions earlier in the week.

In economic news, the Labor Department released a report showing producer prices increased in line with estimates in March.

Crude oil prices dropped from five-month highs on Thursday amid concerns the Federal Reserve will keep interest rates higher for a longer period due to inflationary pressures. West Texas Intermediate crude oil futures for May ended down by $1.19 at $85.02 a barrel.

Closer to home, the Bank of Korea will wrap up its monetary policy meeting this morning and then announce its decision on interest rates; the central bank is widely expected to keep its benchmark lending rate unchanged at 3.50 percent.