South Korean stocks are likely to rise next week by shaking off concerns of a possible end to the U.S. quantitative easing and the plunge in Japan's stock market, analysts said Saturday.
The benchmark Korea Composite Stock Price Index closed at 1,973.45 this week, down 0.67 percent from 1,986.81 a week earlier.
The analysts said the KOSPI is expected to advance as the U.S. was unable to terminate its quantitative easing due to weaker-than-expected economic data and the more than 7 percent drop in Japanese stocks could end up being a "storm in a teacup."
U.S. Federal Reserve Chairman Ben Bernanke said earlier this week that the Federal Reserve may reduce the purchase of state bonds when labor market conditions improve. The quantitative easing has been cited as one of the key growth engines on Wall Street.
Han Chi-hwan, an analyst at KDB Securities Co., said he believes that the upward trend in the KOSPI is likely to persist, adding that the auto sector could gain ground as the pace of Japan's weakening currency slows down. (Yonhap News)
