Additional Support Predicted For South Korea Bourse

The South Korea stock market has alternated between positive and negative finishes through the last four 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 2,110-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is upbeat on continued optimism for an economic recovery. The European and U.S. markets were up and the Asian markets are expected to open in similar fashion.

The KOSPI finished modestly higher on Tuesday following gains from the financial shares and oil and chemical companies.

For the day, the index climbed 14.85 points or 0.71 percent to finish at 2,108.33 after trading between 2,108.26 and 2,134.38. Volume was 700 million shares worth 11.6 trillion won. There were 594 gainers and 252 decliners.

Among the actives, Shinhan Financial shed 0.86 percent, while KB Financial rose 0.15 percent, Hana Financial collected 0.75 percent, Samsung Electronics gained 0.76 percent, LG Electronics fell 0.47 percent, SK Hynix spiked 1.79 percent, Lotte Chemical was up 0.60 percent, LG Chem rose 0.20 percent, S-Oil jumped 1.44 percent, SK Innovation increased 0.77 percent, POSCO lost 0.85 percent, SK Telecom accelerated 1.93 percent, KEPCO soared 2.36 percent, Kia Motors eased 0.16 percent and Hyundai Motors and Hyundai Mobis were unchanged.

The lead from Wall Street is broadly positive as stocks moved notably higher on Tuesday, extending the strong upward move seen in the previous session.

The Dow jumped 217.08 points or 0.85 percent to finish at 25,812.88, while the NASDAQ soared 184.61 points or 1.87 percent to end at 10.058.77 and the S&P 500 advanced 47.05 points or 1.54 percent to close at 3,100.29.

Traders continued to express optimism about the economic outlook despite the continued spike in new coronavirus cases across several states.

Adding to the positive sentiment, the Conference Board reported a bigger than expected improvement in consumer confidence in June. Also, a separate report released by MNI Indicators showed a continued contraction in Chicago-area business activity last month.

Traders also kept an eye on Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee regarding the response to the coronavirus pandemic. Powell said output and employment remain far below pre-pandemic levels and cautioned the outlook for the economy is "extraordinarily uncertain."

Crude oil prices drifted lower on Tuesday as worries about the outlook for energy demand persisted due to continued surge in new cases of coronavirus around the world. West Texas Intermediate crude oil futures for August ended down $0.43 or 1.1 percent at $39.27 a barrel.

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