Markets

South Korea Stock Market May Reclaim 2,200-Point Level

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day losing streak in which it had stumbled almost 30 points or 1.3 percent. The KOSPI now rests just beneath the 2,185-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished slightly lower on Tuesday following losses from the oil companies and mixed performances from the financial shares and technology stocks.

For the day, the index dipped 2.45 points or 0.11 percent to finish at the daily high of 2,183.61 after trading as low as 2,165.60. Volume was 800 million shares worth 11.4 trillion won. There were 477 decliners and 356 gainers.

Among the actives, Shinhan Financial shed 0.68 percent, while KB Financial lost 0.71 percent, Hana Financial collected 0.74 percent, Samsung Electronics added 0.75 percent, LG Electronics surged 3.36 percent, SK Hynix eased 0.12 percent, LG Chem tumbled 2.38 percent, S-Oil retreated 1.58 percent, SK Innovation tanked 2.29 percent, POSCO skidded 1.34 percent, SK Telecom advanced 0.93 percent, KEPCO sank 0.75 percent, Kia Motors gained 0.59 percent and Hyundai Motors and Lotte Chemical were unchanged.

The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.

The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.

The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.

Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.

Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.

Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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