The global forecast for the Asian markets is cautiously optimistic on better than expected employment data from the United States. Commodities may be ready for a rebound after getting hammered last week, while technology stocks also may provide support. The European and U.S. markets finished higher on Friday, and now the Asian bourses also figure to track to the upside.
The KOSPI finished sharply lower on Friday following heavy losses among commodity stocks and automobile producers. For the day, the index plummeted 33.19 points or 1.52 percent to finish at 2,147.45 after trading between 2,133.97 and 2,156.81.
Among the decliners, Hyundai Motor lost 0.62 percent, while Kia shed 2.29 percent, Hyundai Mobis fell 1.95 percent, Hankkook Tire plunged 5.31 percent, S-Oil retreated 5.12 percent and SK Innovation plummeted 6.87 percent.
Wall Street puts forth an optimistic lead as stocks showed a strong upward move in early trading on Friday on upbeat jobs data, although buying interest waned over the course of the trading session. The markets gave back some ground on reports that Greece is considering leaving the European Union but still ended the day higher.
The early strength on Wall Street was largely due to the release of a report from the Labor Department showing stronger than expected job growth in the month of April. The report showed that the U.S. added 244,000 jobs in April following an upwardly revised increase of 221,000 jobs in March. Economists had expected employment to increase by about 185,000 jobs.
The better than expected job growth came as particular surprise in light of a recent batch of disappointing economic data, which had helped to drag stocks lower earlier this week amid concerns about what it meant for the monthly jobs report. At the same time, the Labor Department said that the unemployment rate unexpectedly rose to 9.0 percent in April from 8.8 percent in March. The unemployment rate had been expected to remain unchanged.
Stocks pulled back well off their highs for the session amid reports that Greece is considering leaving the European Union, although numerous sources denied the rumors. German news magazine Der Spiegel reported that Greek Prime Minister George Papandreou's government is considering abandoning the euro and reintroducing its own currency, with the news contributing to a notable drop in the value of the euro.
In corporate news, shares of Kraft Foods (KFT) ended the day notably higher after the food giant reported adjusted first quarter earnings of $0.52 per share compared to estimates for $0.46 per share. However, Kraft forecast full year-year earnings of at least $2.20 per share compared to its previous estimate for earnings of at least $2.24 per share, with the lower guidance reflecting the end of a contract to distribute Starbucks (SBUX) coffee.
The major averages pulled back well off their best levels of the day but managed to end the day in positive territory. The Dow rose by 54.57 points or 0.4 percent to 12,638.74, the NASDAQ advanced 12.84 points or 0.5 percent to 2,827.56 and the S&P 500 climbed 5.10 points or 0.4 percent to 1,340.20. Despite the higher close, the major averages all moved to the downside for the week. The Dow fell by 1.3 percent for the week, while the NASDAQ and the S&P 500 posted weekly losses of 1.6 percent and 1.7 percent, respectively.
On the corporate front, South Korea's state-run KDB Financial Group is considering a bid for the South Korean government's $6.2 billion majority stake in Woori Finance Holdings, according to reports. The government is preparing a new plan to sell its 57 percent stake in Woori by the end of the second quarter. Reports added that the high price tag relating to Woori and complex ownership restrictions on lenders have hindered the sale efforts of the government.
Source: RTTNews
