South Korean shares are expected to take a breather next week as worries remain that the recent decision by the Bank of Japan not to unveil additional stimulus measures could lower the overall appetite for risky assets, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,994.15 points on Friday, down 21.34 points, or 1.05 percent, from a week ago. This marked the first time in three weeks that it has posted a weekly loss.

The market began on a high note bolstered by some robust first-quarter earnings results. The U.S. Fed's decision to freeze its interest rate for April also appeared to have augmented the optimistic mood.

It, however, turned sour after a surprise move by the Bank of Japan on Thursday to stand pat on its stimulus measures without announcing additional ones.

The decision comes as a disappointment as the recent market gains have been supported by ample liquidity sustained by eased monetary policies by major economies.

"Given that the market gains have been liquidity-driven, the BOJ's decision could have a negative impact on such risky assets as stocks," said Kim Hyung-rea, an analyst at Mirae Asset Daewoo.

"There will be a short-term period of correction in the market."

He, however, said that this does not mean that the market will trend down anytime soon, citing the quite low interest rate maintained by the U.S. Federal Reserve.

Meanwhile, analysts said that China and the United States are to announce key indexes next week, which they expect will show a glimpse into how their manufacturing sectors are faring. The two -- PMI and ISM -- are forecast to beat market expectations. (Yonhap)