Three U.S. stock indexes surged to a record high last week as anticipation of base rate cuts and optimism for the U.S. economy are attracting global investments.
In contrast, Korea’s market has not found its way to escape the bearish flow. According to Bloomberg’s Sunday report, Korea’s stock market rose just some 2 percent this year, which is the lowest among the major 20 countries (G20). Sluggish exports are driving down the growth prospects and corporate performance, and even worse, Japan’s new restrictions on exports to Korea is dealing another blow.
The Dow Jones Industrial Average rose by 0.90 percent Friday (local time) from the previous day and closed at 27,332.03. The S&P 500 climbed over 3,000 in the closing price for the first time to 3,013.77, up by 0.46 percent. The tech-heavy Nasdaq Composite indicated a gain of 0.59 percent on the day.
The U.S. stock market is posting gains because of the anticipation that the Fed’s rate cut would expand liquidity. Moreover, it is assessed to have strong fundamentals that can withstand the trade war with China. The economic growth of the U.S. is projected to be higher than that of Korea this year again, following last year's record that showed 2.7 percent for Korea and 2.9 percent for the U.S.
Gun-Huk Lee firstname.lastname@example.org