The Kospi index is expected to rise supported by positive sentiment
At the close of trading on the stock exchange South Korea, the Kospi ended down -2.91 points or -0.14 percent. The weakness of Kospi index depressed from taking advantage by traders
Many market players are taking advantage utilizing the stocks rise on last trading session yesterday, occurred on the previous trading session amid concern over rising interest rates the central bank. The local currency rose slightly versus the US dollar. South Korea’s central bank surprisingly cut interest rates by 25 basis points on Thursday, it seems to anticipate a further delay in the US interest rate hikes in the near future.
Bank of Korea to cut its benchmark interest rate to a record low of 1.25 percent most recently for the month of June, It is the first cut during the last 12 months.
Large capital stocks that rose, Samsung shares rose 1.43 percent, shares of Korea Electric Power rose 0.33 percent, Naver shares rose 1.11 percent, SK Hynix shares rose 1.05 percent, POSCO shares rose 3 percent.
As for the Kospi index was observed futures rose 1.35 points or 0.54% at 251.20, up from its previous close at 249.85.
Besides, exports of South Korea itself has fallen every month since the beginning of last year, but the rate of decline slowed to a five-month low of 6 percent in May.
In a previous poll conducted by Yonhap Infomax, the financial news network of Yonhap News Agency, surveyed 11 of the 13 economists predicted South Korea’s finance fixed rate in June, citing the level of US interest rates may rise this month.
Technically
Resistance: 251.52 251.98 252.23 High / Low: 252.66 / 237.82
Support: Running 250.87 250.37 249.63 Price: 251.30
Comment: For intraday trade today suggest at Sell 248.78; stop and reversal during a break at 246.79; the target reversal 248.53
The yen strengthened ahead of producer price data released
USD versus the JPY opened stronger in early Asian session on Friday, ahead of producer price data. USD / JPY was trading at 107.04, down 0.05%, while the AUD / USD was trading at 0.7434, up 0.05%.
In Japan, results PPI data for May showed a decline of 4.2% in terms of year-on-year and a 0.1% gain as expected for its month to month.
The US dollar index, which measures the strength of dollar against other major currencies, last quoted there at 94.10 points. Overnight, the dollar climbed higher against other major currencies in the trading session Thursday night, leaving a five-week lows after US unemployment data release that sparked optimism on economic improvement.
US Department of Labor said the number of individuals filing for initial jobless benefits last week, June 4 declined by 4,000 to 264,000 from the previous week’s total of 268,000, which was revised up from the initial reading 267 000.
Analysts had expected jobless claims rose 3,000 to 270,000 last week.
The value of US dollar weakened earlier this week, as the market was driven by expectations of the next rate hike by the US central bank after the jobs report for May released bad last Friday, showed the slowest rate of job growth since September 2010.
A speech from Fed Chairman Janet Yellen on Monday showed that interest rates will not rise until the uncertainty over the economic outlook can be resolved.
The Fed raised interest rates for the first time in nearly a decade in December.
Technically
Resistance: 107.02 107.17 107.32 High / Low: 111.32 / 1.1337
Support: 106.93 106.78 106.71 Running Price: 106.25
Comment: For Intraday trade today suggest Buy 107.33 stop loss level at 107.15 level targets at 107.68 level.
Gold prices fell in Asian markets open today
Gold fell in Asian trade on Friday as investors booked profits overnight with sentiment for the yellow metal holds solid as the market is still waiting for a rate hike by the Federal Reserve next week.
On the Comex division of the New York Mercantile Exchange, gold for August delivery decreased 0.29% to $ 1,269.00 per troy ounce. Silver for July delivery rose 0.19% to $ 17.300 per troy ounce, while copper for July delivery fell 0.29% to $ 2.033 per pound
The night before, gold jumped to a 3-week highs, though the dollar is strengthening, it is because investors continue to accumulate gold assets amid indications that the major central banks the world is ready to abandon the principle of keeping interest rates low.
Since the beginning of this year, trading gold futures rose more than 15% holds the advantage of the strongest first quarter in more than a decade.
Survey of leading economists by Reuters showed there was a 40% chance the Federal Reserve will raise interest rates in July, according to the median forecast, along with a 65% probability of a rate rise as early as September.
A day earlier, Bloomberg reported that billionaire investor George Soros has taken a more active role in the activities of the family trade, amid widespread concerns related to a weak global economy.
Last month, there were reports that Soros bought more than 19 million shares of miner Barrick Gold Corporation for approximately $ 264 million, while investments in more than 1 million call options on the SPDR Gold Trust ETF, carries a value of $ 123 million.
Technically
Resistance: 1270.10 1271.30 1272.20 High / Low: 1.1413 / 1.1337
Support: 1268.00 1267.10 1265.68 Running Price: 1269.10
Comment: For Intraday trade today suggest Sell 1256.54; stop loss level at 1259.45; level targets at the level of 1245.33.
