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Renewed Support Predicted For South Korea Bourse

The South Korea stock market on Tuesday halted the three-day winning streak in which it had gathered almost 35 points or 1.7 percent. The KOSPI now rests just above the 1,925-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is broadly positive on an improved outlook for trade between the United States and China, and the resulting surge in crude oil prices. The European and U.S. markets were firmly higher and the Asian bourses are expected to open in similar fashion.

The KOSPI finished modestly lower on Tuesday following losses from the financial shares, technology stocks and industrials.

For the day, the index sank 16.46 points or 0.85 percent to finish at 1,925.83 after trading between 1,923.58 and 1,937.68. Volume as 646 million shares worth 4.22 trillion won. There were 512 decliners and 329 gainers.

Among the actives, Shinhan Financial declined 1.58 percent, while KB Financial lost 1.80 percent, Hana Financial plunged 2.00 percent, Samsung Electronics skidded 1.60 percent, LG Electronics dropped 1.16 percent, POSCO retreated 1.44 percent, SK Telecom plummeted 2.07 percent, KEPCO sank 1.38 percent, Hyundai Motors tumbled 1.53 percent and Kia Motors and SK Hynix were unchanged.

The lead from Wall Street is firmly upbeat as stocks moved higher early Tuesday and only got stronger as the day progressed.

The Dow climbed 372.54 points or 1.44 percent to 26,279.91, while the NASDAQ surged 152.95 points or 1.95 percent to 8,016.36 and the S&P 500 jumped 42.57 points or 1.48 percent to 2,926.32.

The rally on Wall Street came after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve in the U.S.-China trade war by announcing a delay in imposing new tariffs on certain Chinese products. Lighthizer said the 10 percent tariff set to take effect on September 1 will be delayed until December 15 for certain products.

The announcement comes less than two weeks after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a sell-off on Wall Street.

In U.S. economic news, the Labor Department said consumer prices rose in line with estimates in July, although the report also showed another bigger than expected increase in core consumer prices.

Crude oil prices shook off early weakness and posted a modest recovery on Tuesday following news of the delay in tariffs. West Texas Intermediate climbed $2.42 or 4.42 percent to $57.20 after the trade announcement after moving as low as $54.78 earlier in the day.

Closer to home, South Korea will release July figures for unemployment later this morning; in June, the jobless rate was 4.0 percent.

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