SEOUL, April 6 (Yonhap) -- South Korean shares are expected to gain ground next week if the United States and China sign a trade deal over the weekend, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) ended up 0.14 percent at 2,209.61 on Friday.
Brokerages expected the main KOSPI index to test the 2,230 level in the coming week if the U.S.-China trade talks and the summit between South Korea and the U.S. produce any tangible results.
The main index jumped 3.2 percent this week on such hopes.
"Investors are becoming more convinced that a deal is coming between the U.S. and China. They are edging towards an agreement to end a long-running trade row," Cho Yeon-joo, an analyst at NH Investment & Securities Co., said in a research note.
Investors will also eye the Seoul-Washington summit scheduled for April 11 in Washington and the release of the Federal Open Market Committee (FOMC) minutes to get cues to reorganize their portfolios, the analyst said.
Corporate earnings results for the January-March quarter will be closely watched in coming weeks.
On Friday, Samsung Electronics Co. and LG Electronics Co. released their separate earnings guidance for the first quarter. Samsung posted an estimated operating profit of 6.2 trillion won (US$5.45 billion), a 60 percent on-year drop, and LG's fell 19 percent to 899.6 billion won.
"As KOSPI-listed firms are expected to post a 25 percent on-year decline in first-quarter net profit, investor sentiment may be affected depending on earnings results of major firms," NH Investment said.
(News Focus) Korea won set to lose further ground amid trade tensions, Fed concerns
Korea won set to lose further ground amid trade tensions, Fed concerns
Economic uncertainty prompts rush to safe assets
BOK faces growing calls to cut rate amid grim outlook
BOK stands pat, but analysts divided on chance of rate cut