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Tech Shares Expected To Fuel KOSPI's Rebound

The South Korea stock market on Friday snapped the four-day winning streak in which it had soared almost 65 points or 3 percent. The KOSPI now rests just beneath the 2,250-point plateau although it's likely to bounce higher again on Monday.

The global forecast for the Asian markets is upbeat on solid earnings from technology stocks and anticipation for new stimulus measures. The European markets were down on Friday and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished modestly lower on Friday following losses from the financials, technology stocks and industrials.

For the day, the index dropped 17.64 points or 0.78 percent to finish at 2,249.37 after trading between 2,248.49 and 2,281.41. Volume was 679 million shares worth 12.7 trillion won. There were 572 decliners and 276 gainers.

Among the actives, Shinhan Financial retreated 2.75 percent, while KB Financial declined 1.95 percent, Hana Financial dropped 1.99 percent, Samsung Electronics tumbled 1.86 percent, LG Electronics rose 0.19 percent, SK Hynix plunged 2.93 percent, LG Chem skyrocketed 7.17 percent, Lotte Chemical was down 0.88 percent, S-Oil sank 0.81 percent, SK Innovation eased 0.39 percent, POSCO surrendered 2.76 percent, SK Telecom added 0.23 percent, KEPCO fell 0.52 percent, Hyundai Motors shed 0.78 percent and Kia Motors lost 0.74 percent.

After considerable volatility, the lead from Wall Street ended up to be positive thanks to a late-day surge on Friday, fueled by gains from the technology stocks.

The Dow added 114.62 points or 0.44 percent to finish at 26,428.32, while the NASDAQ soared 157.47 points or 1.49 percent to end at 10,745 and the S&P 500 rose 24.90 points or 0.77 percent to close at 3,271.12. For the week, The Dow eased 0.2 percent, the NASDAQ surged 3.7 percent and the S&P jumped 1.7 percent.

The higher close on Wall Street partly reflected a positive reaction to better than expected quarterly results from several leading technology companies, including Apple (AAPL), Amazon (AMZN) and Facebook (FB).

The upbeat tech earnings news overshadowed concerns about stalled negotiations over a new coronavirus stimulus package. Lawmakers appear at an impasse as the attempt to reach a compromise between a $1 trillion GOP relief proposal and the $3.4 trillion bill passed by the Democratic-controlled House in May.

In economic news, the Commerce Department said personal income slumped more than expected in June, although there was another substantial increase in personal spending. A separate report from the University of Michigan said consumer sentiment deteriorated more than expected in July.

Crude oil futures closed higher on Friday, buoyed by a report from the U.S. Energy Information Administration that said oil production fell sharply in May. West Texas Intermediate Crude oil futures for September ended up $0.35 or 0.9 percent at $40.27 a barrel.

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