SEOUL, June 8 |
SEOUL, June 8 (Reuters) - Seoul shares are seen opening higher on Friday on the back of China's surprise interest rate cut which should help boost demand in the country's largest export market, although the stock market remains vulnerable to developments in the euro zone.
Global stocks rallied on China's surprise 25 basis point rate cut, although enthusiasm was tempered as U.S. Federal Reserve Chairman Ben Bernanke did not offer the prospect of an immediate stimulus in a speech on Thursday.
"The market is showing signs of settling as new policies ease investment sentiment," said Lee Seung-woo, an analyst at KDB Daewoo Securities.
"However, the policies are coming from outside Europe, and the answer for a real turnaround will have to wait until the upcoming EU leaders' summit."
EU leaders are set to meet later this month to discuss closer integration to try to stem its financial crisis and risks of contagion from Greece.
The Korea Composite Stock Price Index (KOSPI) rose 2.56 percent to close at 1,847.95 points on Thursday, a one-week high on expectations the EU would take strong action and on hopes of more easing from the Federal Reserve.
The Bank of Korea holds a rate meeting later on Friday, although a Reuters poll shows economists expect it to remain on hold at 3.25 percent for the 12th successive month. (Reporting By Jungyoon Lee; Editing by David Chance)
- Link this
- Share this
- Digg this
- Reprints
No comments:
Post a Comment