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South Korea Bourse May Add To Its Winnings On Thursday

The South Korea stock market has finished higher in four straight sessions, gathering more than 65 points or 3.2 percent along the way. The KOSPI now rests just beneath the 1,990-point plateau and it's looking at another green light for Thursday's trade.

The global forecast for the Asian markets is broadly positive on optimism for economic recovery in the wake of the Covid-19 shutdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.

The KOSPI finished modestly higher on Wednesday following mixed performances from the financial shares, technology stocks and chemical companies.

For the day, the index picked up 9.03 points or 0.46 percent to finish at 1,989.64 after trading between 1,972.12 and 1,992.20. Volume was 688 million shares, worth about 8 trillion won. There were 550 gainers and 275 decliners.

Among the actives, Shinhan Financial sank 1.97 percent, while KB Financial collected 0.31 percent, Hana Financial eased 0.19 percent, Samsung Electronics lost 0.60 percent, LG Electronics dipped 0.23 percent, SK Hynix jumped 1.69 percent, LG Chem advanced 1.54 percent, Lotte Chemical fell 0.26 percent, S-Oil declined 2.07 percent, POSCO retreated 1.97 percent, SK Telecom climbed 1.20 percent, KEPCO skidded 1.15 percent, Hyundai Motors tumbled 1.82 percent, Kia Motors plunged 2.68 percent and SK Innovation was unchanged.

The lead from Wall Street is upbeat as stocks showed a strong move to the upside on Wednesday, erasing the losses posted in the previous session.

The Dow climbed 369.04 points or 1.52 percent to finish at 24,575.90, while the NASDAQ surged 190.67 points or 2.08 percent to 9,375.78 and the S&P 500 jumped 48.67 points or 1.67 percent to end at 2,971.61.

The rally on Wall Street reflected optimism for an economic recovery as states reopen following the coronavirus-induced lockdowns. Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than expected.

Positive sentiment was also generated by earnings news from home improvement retailer Lowe's (LOW), which reported Q1 results that exceeded estimates on both the top and bottom lines.

Also, the minutes of the Federal Reserve's latest monetary policy meeting highlighted concerns about the uncertainty and risks to economic activity created by the coronavirus pandemic.

Crude oil prices climbed to a 10-week high on Wednesday after data showed a drop in crude stockpiles, and amid optimism about a pickup in energy demand. West Texas Intermediate Crude oil futures for July ended up $1.53, or 4.8 percent at $33.49 a barrel, the highest since March 10.

Closer to home, the Bank of Korea said this morning that producer prices were down 0.7 percent on month in April, following the 0.9 percent drop in March. On a yearly basis, producer prices fell 1.5 percent after sliding 0.6 percent in the previous month.

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