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Overbought KOSPI Still Draws A Green Light

The win streak has hit 13 sessions now for the South Korea stock market, which has soared more than 120 points or 5.4 percent in that span. The KOSPI now rests just beneath the 2,250-point plateau and it's got another positive lead for Wednesday.

The global forecast for the Asian markets is upbeat on positive earnings news and support from crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The KOSPI finished modestly higher on Tuesday following gains from the financials, technology stocks and automobile producers.

For the day, the index added 5.75 points or 0.26 percent to finish at 2,248.63 after trading between 2,235.72 and 2,249.89. Volume was 561 million shares worth 6.89 trillion won. There were 475 decliners and 345 gainers.

Among the actives, Shinhan Financial collected 0.11 percent, while KB Financial jumped 1.31 percent, Hana Financial dropped 1.02 percent, Samsung Electronics added 0.43 percent, LG Electronics climbed 1.70 percent, LG Display fell 0.46 percent, SK hynix advanced 0.88 percent, POSCO rose 0.51 percent, SK Telecom gained 0.61 percent, Hyundai Motor spiked 2.39 percent and Kia Motors soared 2.83 percent.

The lead from Wall Street suggests mild upside as stocks fluctuated on Tuesday but managed to finish in the green.

The Dow added 67.89 points or 0.26 percent to 26,452.66, while the NASDAQ gained 24.21 points or 0.30 percent to 8,000.23 and the S&P 500 rose 1.48 points or 0.05 percent to 2,907.06.

Early buying interest was generated in reaction to solid earnings news from Dow components Johnson & Johnson (JNJ) and UnitedHealth (UNH).

The buying interest was offset by Federal Reserve report showing industrial production unexpectedly fell in March. Also, the National Association of Home Builders noted a modest improvement in U.S. homebuilder confidence in April.

Crude oil prices moved higher on Tuesday amid prospects of tight supply conditions in the market. West Texas Intermediate Crude oil futures for May ended up $0.65 or 1 percent at $64.05 a barrel.

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