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South Korea Stock Market Expected To Run Out Of Steam

The South Korea stock market has finished higher in back-to-back trading days, advancing nearly 35 points or 1.7 percent along the way. The KOSPI now rests just above the 2,160-point plateau although investors figure to cash in on Thursday.

The global forecast for the Asian markets is broadly negative on renewed fears regarding the Covid-19 virus. The European and U.S. markets were sharply lower and the Asian markets are tipped to follow suit.

The KOSPI finished sharply higher on Wednesday following gains from the financial shares, technology stocks and industrials.

For the day, the index spiked 30.27 points or 1.42 percent to finish at 2,161.51 after trading between 2,143.91 and 2,171.86. Volume was 895 million shares worth 12.7 trillion won. There were 518 gainers and 319 decliners.

Among the actives, Shinhan Financial advanced 1.34 percent, while KB Financial collected 0.58 percent, Hana Financial accelerated 1.84 percent, Samsung Electronics jumped 2.92 percent, LG Electronics added 0.60 percent, LG Display gained 0.84 percent, Lotte Chemical fell 0.57 percent, SK Hynix climbed 2.26 percent, S-Oil rose 0.30 percent, SK Innovation skyrocketed 6.64 percent, POSCO perked 1.09 percent, Hyundai Motors soared 4.36 percent, Kia Motors surged 4.65 percent and SK Telecom and KEPCO were unchanged.

The lead from Wall Street is soft as stocks opened firmly in the red on Wednesday and remained there throughout the session.

The Dow plummeted 710.16 points or 2.72 percent to finish at 25,445.94, while the NASDAQ plunged 222.20 points or 2.19 percent to end at 9,909.17 and the S&P 500 tumbled 80.96 points or 2.59 percent to close at 3,050.33.

The sell-off on Wall Street came as traders could no longer ignore the spiking number of new Covid-19 cases in several U.S. states after Florida and California both reported their single biggest daily increases in new cases.

New York Governor Andrew Cuomo also announced that out-of-state visitors coming to New York, New Jersey and Connecticut from regions with high Covid-19 rates will be required to quarantine for 14 days.

Recent studies suggest the nation's seven-day average of daily new Covid-19 cases spiked more than 30 percent compared with a week ago.

Crude oil prices declined sharply on Wednesday as worries about the outlook for energy demand rose after data showed a surge in coronavirus cases. West Texas Intermediate Crude oil futures for August ended down $2.36 or 5.8 percent at $38.01 a barrel.

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