RTTNews - The South Korean stock market finished Thursday's trade lower by just a fraction of one point, but that was enough to end its modest winning streak at two sessions worth 22 points or 1.6 percent. The KOSPI is holding support at 1,410 points, although analysts expect the market to plummet at the opening of trade on Friday - likely giving up the 1,400-point plateau.
The global forecast for the Asian markets is broadly negative, thanks to U.S. jobs data that came in worse than expected, for the moment dashing hopes that the worldwide economic slowdown might be coming to an end. Commodities and financials in particular are expected to fall, especially after the European and U.S .markets ended with heavy losses - and the Asian bourses are also expected to plummet.
The KOSPI finished barely lower on Thursday, as weakness among the oil stocks and shippers was enough to nudge the market into the red. The airlines finished higher on the fall in oil prices, while the technology shares also were up.
For the day, the index eased 0.18 points or 0.01 percent to close at 1,411.48 after trading between 1,403.18 and 1,419.15.
Finishing lower, SK Energy fell 1.91 percent, while S-Oil eased 0.71 percent, Hyundai Heavy Industries shed 1.53 percent, STX Offshore & Shipbuilding lost 1.85 percent, Hanjin Shipping fell 1.92 percent and STX Pan Ocean was down 2.53 percent.
Among the gainers, Hynix Semiconductor added 5.8 percent, while Kia Motors was up 2.01 percent, Asiana Airlines gained 0.67 percent and Korean Air Line was up 0.28 percent.
The lead from Wall Street is sharply lower as stocks lingered near their worst levels of the day throughout the trading session on Thursday after plummeting early on in reaction to disappointing employment data. The major averages all posted steep losses ending the holiday-shortened week on a sour note as the markets will be closed on Friday for Independence Day.
The day's losses came on the heels of a report from the Labor Department showing that non-farm payroll employment fell by 467,000 jobs in June following a revised decrease of 322,000 jobs in May. Economists had expected a decrease of about 365,000 jobs compared to the loss of 345,000 jobs originally reported for the previous month. With the bigger than expected decrease in employment, the unemployment rate edged up to 9.5 percent in June from 9.4 percent in May. The increase lifted the unemployment rate to its highest level since August of 1983, although it was below economist estimates of 9.6 percent.
Following the weak jobs data, traders largely shrugged off a report from the Commerce Department showing that orders for manufactured goods rose 1.2 percent in May following a downwardly revised 0.5 percent increase in April. Economists had expected orders to rise 0.9 percent compared to the 0.7 percent increase originally reported for the previous month.
On the corporate front, auto-parts supplier Lear Corporation (LEA) said that it has reached an agreement with lenders to restructure its debt and said it plans to file for Chapter 11 protection soon. In addition, the company said it had obtained $500 million in bankruptcy financing.
In other news, Walgreen Co. (WAG) said that its comparable store sales for the month of June increased 3.4 percent. Net sales for the month were $5.24 billion, up 9.0 percent from $4.80 billion for the same month in 2008.
Separately, Exelon (EXC) announced an increase in its bid to acquire all of the outstanding shares of NRG Energy (NRG), now offering a fixed exchange ratio of 0.545 of a share, a 12.4 percent increase over the initial exchange offer of 0.485.
The major indices saw further downside late in the session, finishing near their worst levels of the day. The Dow closed down by 223.32 points or 2.6 percent at 8,280.74, the NASDAQ fell by 49.20 points or 2.7 percent to 1,796.52, and the S&P 500 closed down 26.91 points or 2.9 percent at 896.42. For the week the, Dow fell by 1.9 percent, the NASDAQ slipped 2.3 percent and the S&P 500 dropped by 2.4 percent. The week's downward move was largely due to Thursday's retreat.
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