Seoul reached an all-time high
The Seoul Stock Exchange settled with a rise of 0.37% in its main indicator. The Kospi represented a new all-time high.
US employment data eases fears about the change in the economic cycle.
The selective South Korean Kospi gained 12.04 points on Monday to stand at 3,252.12 units. Meanwhile, the Kosdaq technological index dropped by 0.17%, or 1.72 points, to 985.86.
The technological Samsung Electronics, the most important token for the Kospi, closed the session with a decrease of 0.36%. Meanwhile, SK Hynix, the world’s second-largest memory chip manufacturer, closed with a loss of 0.39%.
Naver, one of the largest South Korean internet portal operator, gained 1.54%. Kakao, an instant messaging app owner, added 1.61%.
In the biopharmaceutical sector, Samsung Biologics advanced by 0.24%, but its competitor, Celltrion, lost 0.94%.
Hyundai Motor, the largest national car manufacturer, closed flat.
Analysts believe ECB and Fed will avoid the withdrawal of stimulus in June
Managers and other financial institutions believe that central banks will probably let the summer pass to confirm whether the rise in inflation is temporary.
Analysts also share that the withdrawal of monetary stimulus will begin earlier in the US, where the recovery is stronger than in Europe.
Investors’ fear of tapering has reached such a point that positive macroeconomic data, especially if they exceed expectations, translate into falls in the stock markets and increases in bond yields.
Nobody disputes that the withdrawal of stimuli is on the horizon, especially in the US. However, the situations in Europe and the US are not comparable.
Analysts do not expect a change in bias from the ECB at the June 10 meeting. Instead, they assume ECB will continue with the stimulus policy until at least 2022.
Analysts see a withdrawal of stimulus in the US closer, although they do not expect the Federal Reserve to consider it before the end of August.
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