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Continued Consolidation Called For South Korea Shares

The South Korea stock market turned emphatically lower again on Monday, one session after it had ended the seven-day losing streak in which it had plummeted more than 510 points or 29 percent. The KOSPI now rests just above the 1,480-point plateau and it may tick lower again on Tuesday.

The global forecast for the Asian markets remains negative on concerns about the effect of the coronavirus on the global economy. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KOSPI finished with heavy losses on Monday with damage across all sectors - especially the financials.

For the day, the index tumbled 83.69 points or 5.34 percent to finish at 1,482.46 after trading between 1,458.41 and 1,516.75. Volume was 636 million shares worth 9.5 trillion won. There were 829 decliners and 66 gainers.

Among the actives, Shinhan Financial tumbled 8.26 percent, while KB Financial plunged 10.37 percent, Hana Financial plummeted 10.65 percent, Samsung Electronics shed 6.39 percent, LG Electronics lost 8.05 percent, LG Chem dipped 1.65 percent, SK Hynix tumbled 7.22 percent, POSCO shed 4.50 percent, SK Telecom sank 5.43 percent, Hyundai Motors fell 3.09 percent, Kia Motors cratered 10.97 percent and KEPCO was unchanged.

The lead from Wall Street is soft with a dose of volatility as stocks saw wild swings again on Monday. The NASDAQ peeked into positive territory a couple of times, but all three major averages finished in the red.

The Dow sank 754.38 points or 3.93 percent to finish at 18,419.60, while the NASDAQ lost 56.67 points or 0.82 percent to 6,822.85 and the S&P 500 fell 86.44 points or 3.75 percent to 2,21848.

After opening sharply lower, the markets got a lift when the Federal Reserve announced extensive new measures to support the economy - saying that it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.

The measures include an unlimited expansion of the Fed's asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities in unspecified large amounts.

But the markets resumed their downward march in afternoon trade as the virus continues to spread.

Crude oil prices climbed higher on Monday, reacting positively to the Federal Reserve's announcement of extensive new measures to support the economy. West Texas Intermediate Crude oil futures for May ended up $0.73 or 3.2 percent at $23.36 a barrel.

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