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South Korea Bourse: Support Expected At 2,200 Points

The South Korea stock market has finished lower in back-to-back sessions, sliding more than 25 points or 1.1 percent along the way. The KOSPI now rests just above the 2,200-point plateau although it figures to bounce higher again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on the belief the coronavirus will soon be eliminated. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished modestly lower on Monday as losses from the financials and technology stocks were mitigated by support from the oil companies and a mixed picture from the industrials.

For the day, the index dropped 10.88 points or 0.49 percent to finish at 2,201.07 after trading between 2,180.51 and 2,203.39. Volume was 600 million shares worth 5.33 trillion won. There were 423 decliners and 395 gainers.

Among the actives, Shinhan Financial plunged 2.55 percent, while KB Financial tumbled 2.59 percent, Hana Financial sank 1.45 percent, Samsung Electronics skidded 1.16 percent, LG Electronics declined 0.45 percent, S-Oil climbed 1.17 percent, SK Innovation surged 2.25 percent, Lotte Chemical added 0.24 percent, SK Hynix fell 0.50 percent, POSCO dropped 1.12 percent, SK Telecom retreated 1.53 percent, KEPCO shed 0.59 percent, Hyundai Motors lost 0.76 percent and Kia Motors added 0.37 percent.

The lead from Wall Street is positive as stocks shook off early weakness on Monday and moved higher as the day progressed.

The Dow added 174.31 points or 0.60 percent to end at 29,276.82, while the NASDAQ rose 107.88 points or 1.13 percent to 9,628.39 and the S&P 500 gained 24.38 points or 0.73 percent to 3,352.09.

The strength on Wall Street came as traders returned to ignoring concerns about the economic impact of the deadly coronavirus outbreak. The Chinese government has revealed that a total of 40,171 cases of coronavirus have been confirmed, with 908 people dying from the disease.

Traders seemed reassured by Chinese President Xi Jinping's pledge to win the fight against the coronavirus outbreak, adding that China will speed up the development of drugs aimed at treating the deadly pneumonia-like virus.

Crude oil prices declined sharply on Monday amid rising concerns about the global economy and the outlook for energy demand due to the coronavirus outbreak. West Texas Intermediate Crude oil futures ended down $0.75 or 1.5 percent at $49.57 a barrel, the lowest settlement for a front-month contract since early January 2019.

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