South Korean stocks are expected to rebound next week on hopes that U.S. central bankers will give reassuring signs about putting the stimulus cut on hold in their upcoming speeches, analysts said.

   The benchmark Korea Composite Stock Price Index (KOSPI) closed down 2.23 percent to 1,984.87 on Friday from a week earlier. The main index erased most of the gains from recent rallies, falling to the lowest point in two months and below the psychologically significant 2,000 mark for the first time since Oct. 7.

   The decline came as uncertainties arose again over when the U.S. Federal Reserve will start unwinding the bond purchases, and the forecast-beating third-quarter growth in the U.S. intensified the fear that the Fed might bring it about sooner.

   Foreigners snapped their record-long buying spree and turned to dumping local shares, worth a combined net 484.7 billion won.

   Next week, the direction of the KOSPI will hinge on the remarks to be made by federal bankers in Washington, including Fed Chairman Ben Bernanke.

   Analysts said investors will keep an eye on what they say about the stimulus cut, and it is most likely that the officials will once again stress the tapering will take place at a modest and gradual pace.

   "We therefore expect the consensus for a March tapering to remain in their speeches, instead of an early start, which will give investors a sense of comfort next week," said Kwak Byung-ryeol, an analyst at Eugene Investment & Securities Co.

   Analysts noted that the European Central Bank's rate cut bodes well for the Seoul bourse, as it will likely spur more foreign inflows from Europe.

   The policy meeting in China slated for Nov. 9-12 is also another key event that will affect the local stock market, since Beijing is expected to roll out its road map for an economic reform, analysts added.

   This week, tech and telecom shares were the biggest decliners, with each tumbling more than 5 percent on the main bourse. Shares of state-run energy companies and shipyards ended bullish, gaining 2.07 percent and 1.11 percent, respectively. (Yonhap News)