SEOUL, Feb. 12 (Korea Bizwire) — South Korean stocks are likely to fluctuate in a broad range as investors digest the high-flying inflation rates in the United States, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,747.71 points Friday, little changed from 2,750.26 points a week ago.
The key stock index on Friday snapped its three-day winning streak from corporate earnings hope due largely to the highest U.S. inflation growth in four decades, released the previous night.
Analysts said the high-flying price pressure in the world’s largest economy is fanning concerns about the U.S. Federal Reserve’s hawkish signal and aggressive rate hikes.
Analysts said the record U.S. price pressure, led by soaring fuel and used car prices, would continue to impact the local financial markets in the coming week.
“After the price data’s release, St. Louis Fed Chair James Bullard said he supported a 50 basis point hike of the key interest rates (in March). Strong U.S. tapering has again risen as a key risk in the stock market,” NH Investment & Securities analyst Kim Young-hwan said.
On the other hand, the optimism for the global economic reopening in Europe and the U.S. may buoy the stock prices, Kim added.