South Korean stocks are expected to keep their upward momentum this week on improved investor sentiment following recently-unveiled stimulus measures by the U.S. Federal Reserve, analysts said Saturday.
The country’s key stock index, the KOSPI, jumped 4.04 percent, or 78 points, last week to close at a five-month high of 2,007.58 on Friday.
On Friday alone, the index rallied 2.92 percent as investors cheered the Fed’s decision to purchase mortgage bonds as long as it needs and keep interest rates at record lows longer than earlier planned.
The so-called third quantitative easing measures sent Wall street soaring. The Dow Jones industrial average jumped 1.55 percent on Thursday.
The news comes days after a German court cleared the way for a permanent euro-area bailout fund.
Analysts said the upward trend in stock markets here will likely continue this week, as recent news from Europe and the U.S. helped lift uncertainty shrouding over the overall investor minds.
“The KOSPI will likely try to start its upward move in earnest following moving around the 2,000 point mark,” said Lee Seung-woo, an analyst at KDB Daewoo Securities. “If the market starts to trend upward, it will be possible to see favorable moods across the board.” (Yonhap News)
