SEOUL: Seoul shares are likely to edge lower on Thursday, tracking Wall Street losses sparked by lacklustre economic data, but a potential interest rate cut in Europe and approval of South Korea's stimulus plan could cap declines.
"The index isn't expected to fall far, as expectations for a cut in interest rates by the ECB (European Central Bank) on Thursday as well as a possible parliamentary approval for the government's extra budget on Friday shores up investor appetite," said Lim Dong-rak, an analyst at Hanyang Securities.
US stocks dropped on Wednesday after payrolls processor ADP reported a worse-than-expected 119,000 jobs were added by US private employers in April, while growth in China's factory sector unexpectedly slowed last month as new export orders fell.
The ECB is expected to cut its main interest rate to a record low of 0.5 percent on Thursday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed up 1.2 percent at 1,963.95 points on Tuesday, a near four-week high. The market was closed on Wednesday for Labour Day.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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