Plus   Neg

Rally May Stall For South Korea Stock Market

The South Korea stock market has climbed higher in three straight sessions, gathering almost 35 points or 1.7 percent along the way. The KOSPI now rests just above the 1,940-point plateau although investors may cash in on Tuesday.

The global forecast for the Asian markets is broadly negative on continuing concerns over the trade dispute between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The KOSPI finished slightly higher on Monday following gains from the technology stocks, weakness from the financials and a mixed picture from the industrials.

For the day, the index added 4.54 points or 0.23 percent to finish at 1,942.29 after trading between 1,933.25 and 1,949.19. Volume was 416 million shares worth 3.82 trillion won. There were 492 gainers and 332 decliners.

Among the actives, KB Financial shed 0.76 percent, while Hana Financial lost 0.61 percent, Samsung Electronics climbed 1.27 percent, LG Electronics gained 0.33 percent, LG Display was down 0.39 percent, Samsung SDI advanced 0.81 percent, SK Hynix jumped 1.64 percent, SK Telecom sank 0.41 percent, KEPCO rose 0.40 percent, Hyundai Motors skidded 1.13 percent, Kia Motors added 0.69 percent and Shinhan Financial and POSCO were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and continued to head south throughout the day, extending last week's losses.

The Dow shed 391.00 points or 1.49 percent to 25,896.44, while the NASDAQ lost 95.73 points or 1.20 percent to 7,863.41 and the S&P 500 fell 35.96 points or 1.23 percent to 2,882.69.

The sell-off on Wall Street came amid worries about a prolonged trade war between the U.S. and China after President Donald Trump recently indicated he feels no sense of urgency to resolve the dispute.

Concerns about the impact of increasingly violent protests in Hong Kong also weighed on stocks, with the Hong Kong International Airport canceling all departing flights due to the disruption caused by protesters.

The geopolitical concerns increased the appeal of safe haven assets like bonds, resulting in a steep drop in U.S. treasury yields. The yield on the benchmark ten-year note tumbled to its lowest closing level in almost three years.

Crude oil prices were higher Monday on speculation production cuts by OPEC and fewer shipments from Saudi Arabia will outweigh concerns about near term energy demand outlook. West Texas Intermediate crude oil futures for September ended up $0.43 or 0.8 percent at $54.93 a barrel.

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