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Rebound Anticipated For South Korea Stock Market

The South Korea stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had advanced nearly 35 points or 1.7 percent. The KOSPI now rests just beneath the 2,095-point plateau although it figures to recoup much of those losses on Tuesday.

The global forecast for the Asian markets is upbeat as hopes for a solid economic recovery outweighed a rising number of coronavirus cases worldwide. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The KOSPI finished sharply lower on Monday with damage across the board - especially from the financials, industrials and technology stocks.

For the day, the index tumbled 41.17 points or 1.93 percent to finish at 2,093.48 after trading between 2,087.84 and 2,120.50. Volume was 632 million shares worth 8.9 trillion won. There were 737 decliners and 135 gainers.

Among the actives, Shinhan Financial sank 2.36 percent, while KB Financial declined 2.59 percent, Hana Financial dipped 0.92 percent, Samsung Electronics retreated 1.69 percent, LG Electronics shed 1.85 percent, LG Display plummeted 3.02 percent, SK Hynix skidded 1.18 percent, Lotte Chemical tanked 3.49 percent, S-Oil lost 2.95 percent, SK Innovation lost 3.27 percent, POSCO plunged 3.04 percent, SK Telecom eased 0.24 percent, KEPCO dropped 2.06 percent, Hyundai Motors surrendered 2.30 percent and Kia Motors tumbled 2.87 percent.

The lead from Wall Street is broadly positive as stocks shook off a soft open Monday to move solidly into the green, offsetting losses from the previous session.

The Dow surged 580 points or 2.32 percent to finish at 25,595.80, while the NASDAQ spiked 116.93 points or 1.20 percent to end at 9,874.15 and the S&P 500 soared 44.19 points or 1.47 percent to close at 3,053.24.

The soft open on Wall Street was in response to rising numbers of new cases of coronavirus in the U.S. and several other parts across the globe. Data from Johns Hopkins University showed the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.

But the markets rebounded when the National Association of Realtors said that pending home sales in the United States surged a record 44.3 percent in May. Also, the Dallas Fed's manufacturing index fell less than expected, further stoking optimism for economic recovery.

Crude oil prices climbed higher Monday despite concerns about the outlook for energy demand amid the spike in the virus. West Texas Intermediate crude futures for August ended up $1.21 or 3.1 percent at $39.70 a barrel.

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