Tech Shares Expected To Boost South Korea Shares

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last eight 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 2,200-point plateau and it figures to bounce higher again on Tuesday.

The global forecast for the Asian markets is upbeat on tech shares, stimulus hopes and optimism for a coronavirus vaccine. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

The KOSPI finished slightly lower on Monday as losses from the technology stocks and oil and chemical companies were mitigated by support from the financial shares and automobile producers.

For the day, the index dipped 2.99 points or 0.14 percent to finish at 2,198.20 after trading between 2,183.83 and 2,209.59. Volume was 675 million shares worth 11.8 trillion won. There were 476 decliners and 369 gainers.

Among the actives, Shinhan Financial rallied 2.35 percent, while KB Financial soared 3.51 percent, Hana Financial surged 5.54 percent, Samsung Electronics shed 0.37 percent, LG Electronics lost 0.35 percent, SK Hynix dropped 0.84 percent, LG Chem retreated 0.97 percent, Lotte Chemical sank 0.85 percent, S-Oil skidded 1.26 percent, SK Innovation tumbled 1.61 percent, POSCO perked 0.54 percent, SK Telecom fell 0.23 percent, KEPCO advanced 1.01 percent, Hyundai Motors spiked 3.40 percent and Kia Motors accelerated 3.26 percent.

The lead from Wall Street is generally positive as stocks ended in the green, although the Dow spent much of the day in the red until breaking through late in the day.

The Dow added 8.92 points or 0.03 percent to finish at 26,680.87, while the NASDAQ surged 263.90 points or 2.51 percent to end at 10,767.09 and the S&P 500 gained 27.11 points or 0.84 percent to close at 3,251.84.

The spike by the NASDAQ came as traders got back into big-name tech stocks after the index slumped last week - with support from the likes of Amazon (AMZN), software giant Microsoft (MSFT), Google parent Alphabet (GOOGL) and tech giant Apple (AAPL).

The strength on Wall Street also came following positive results from trials of experimental COVID-19 vaccines by Oxford University and AstraZeneca (AZN) and Pfizer (PFE) and BioNTech (BNTX).

The positive news on the vaccine front came as some states continue to see spikes in coronavirus cases, with Florida reporting 12,523 new cases on Saturday, reflecting the fifth consecutive day the state reported more than new 10,000 infections.

Crude oil prices moved higher on Monday as worries about the energy demand outlook faded slightly on optimism for a potential coronavirus vaccine. West Texas Intermediate Crude oil futures for August ended higher by $0.22 or 0.5 percent at $40.81 a barrel.

Closer to home, the Bank of Korea said this morning that producer prices advanced 0.5 percent on month in June - beating forecasts for a gain of 0.3 percent following the flat reading in May. On a yearly basis, producer prices sank 0.9 percent - again exceeding forecasts for a fall of 1.4 percent following the 1.8 percent drop in the previous month.

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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