South Korea Stock Market Predicted To Snap Losing Streak
(RTTNews) - The South Korea stock market has finished lower in consecutive trading days, plummeting almost 80 points or 3.2 percent along the way. The KOSPI now rests just above the 2,330-point plateau although it may find traction on Wednesday.
The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The KOSPI finished sharply lower on Tuesday following losses from the financial shares, technology stocks, industrials and oil companies.
For the day, the index plunged 56.80 points or 2.38 percent to finish at 2,332.59 after trading between 2,323.58 and 2,388.49. Volume was 1 billion shares worth 17.5 trillion won. There were 816 decliners and 80 gainers.
Among the actives, Shinhan Financial retreated 1.95 percent, while KB Financial shed 0.53 percent, Hana Financial declined 1.42 percent, Samsung Electronics skidded 1.69 percent, LG Electronics lost 2.20 percent, SK Hynix tanked 3.79 percent, Samsung SDI rose 0.11 percent, LG Chem spiked 1.91 percent, Lotte Chemical dropped 4.94 percent, S-Oil plunged 3.72 percent, SK Innovation plummeted 4.13 percent, POSCO perked 1.83 percent, SK Telecom sank 1.25 percent, KEPCO surrendered 2.17 percent, Hyundai Motor tumbled 2.97 percent and Kia Motors cratered 4.44 percent.
The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.
The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.
The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."
Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.
In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.
Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.
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