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Mild Rebound Predicted For South Korea Bourse

The South Korea stock market on Wednesday ended the four-day winning streak in which it had climbed almost 90 points or 4 percent to a nine-month closing high. The KOSPI now rests just above the 2,230-point plateau although it may tick higher again on Thursday.

The global forecast for the Asian markets suggests mild upside after the U.S. and China signed phase one of their trade deal - although the upside had already largely been priced in. The European markets were mixed and the U.S. bourses were slightly higher and the Asian markets figure to split the difference.

The KOSPI finished slightly lower on Wednesday following mixed performances from the financials, industrials and technology stocks.

For the day, the index sank 7.90 points or 0.35 percent to finish at 2,230.98 after trading between 2,223.39 and 2,238.21. Volume was 734 million shares worth 5.8 trillion won. There were 513 gainers and 279 decliners.

Among the actives, Shinhan Financial shed 0.84 percent, while KB Financial was up 0.10 percent, Hana Financial collected 0.14 percent, Samsung Electronics skidded 1.67 percent, LG Electronics advanced 0.72 percent, LG Chem sank 1.50 percent, SK Hynix tumbled 2.29 percent, SK Telecom gained 0.64 percent, KEPCO rose 0.18 percent, Hyundai Motors dropped 0.86 percent, Kia Motors added 0.12 percent and POSCO was unchanged.

The lead from Wall Street is cautiously optimistic as stocks opened higher on Wednesday, faded as the day progressed but still ended in the green.

The Dow added 90.55 points or 0.31 percent to finish at 29,030.22, while the NASDAQ gained 7.37 points or 0.08 percent to 9,258.70 and the S&P 500 rose 6.14 points or 0.19 percent to 3,289.29.

The early strength on Wall Street came as traders awaited the signing of the trade deal between the U.S. and China. But stocks pulled back after the agreement was signed in a ceremony at the White House.

In economic news, the Labor Department noted a modest increase in U.S. producer prices in December. Also, the Federal Reserve's Beige Book said U.S. economic activity generally continued to expand modestly in the final six weeks of 2019.

Crude oil prices drifted lower and settled at a six-week low on Wednesday after data showed a big increase in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures (WTI) for February ended down $0.42 or 0.7 percent at $57.81 a barrel.

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