[THE INVESTOR] Korean stocks are expected to make a modest upswing next week in the wake of recent relief rallies amid optimism over corporate performances this year, analysts said.
The benchmark KOSPI closed at 2,177.73 points on Jan. 25, up 3.35 percent from a week earlier, to reach its highest point since Oct. 10, 2018.
A dealer at a dealing room KEB Hana Bank in Seoul headquarters watches the electronic display board on Jan. 25.
The index was on a shaky session earlier this week as investors sold off stocks on concerns about impacts from the slowdown of the Chinese economy.
But signs of progress in the trade dispute between Washington and Beijing whetted investors' appetite for risk, and several positive assessments by experts on the semiconductor market helped them brush off concerns over weaker-than-expected quarterly corporate earnings, according to the analysts.
Foreigners, in particular, helped lift the index by scooping up tech blue chips. Market bellwether Samsung Electronics spiked 5.79 percent this week and No. 2 chipmaker SK hynix jumped 15.48 percent.
The positive flow is forecast to continue in the coming week, experts said.
"The US central bank is expected to make market-friendly gestures in the upcoming meeting later next week, and high-level talks between the US and China also raise hope for progress in the trade war," said Kim Byung-yeon, an analyst at NH Investment & Securities.
"But the market could experience volatility amid lingering issues such as the shutdown of the US government," he added.
By Son Ji-hyoung and newswires (email@example.com)