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Strong Resistance At 2,400 Points Predicted For KOSPI

The South Korea stock market bounced higher again on Thursday, one day after halting the two-day winning streak in which it had collected more than 30 points or 1.3 percent. The KOSPI now rests just beneath the 2,400-point plateau although it figures to move lower again on Friday.

The global forecast for the Asian markets is weak as optimism waned in the United States over a coronavirus relief package. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The KOSPI finished modestly higher on Thursday following gains from the financials and industrials, while the technology, oil and chemical companies were mixed.

For the day, the index advanced 20.67 points or 0.87 percent to finish at 2,396.48 after trading between 2,388.56 and 2,406.68. Volume was 1.1 billion shares worth 15.6 trillion won. There were 596 gainers and 232 decliners.

Among the actives, Shinhan Financial collected 0.35 percent, while KB Financial was up 0.13 percent, Hana Financial added 0.54 percent, Samsung Electronics climbed 1.37 percent, LG Electronics surged 3.33 percent, SK Hynix dropped 0.91 percent, LG Chem spiked 2.00 percent, Lotte Chemical fell 0.24 percent, S-Oil dipped 0.18 percent, SK Innovation skyrocketed 8.22 percent, POSCO perked 0.27 percent, SK Telecom gathered 0.84 percent, KEPCO gained 0.25 percent, Hyundai Motors advanced 0.90 percent and Kia Motors and Samsung SDI both rose 0.12 percent.

The lead from Wall Street is negative as stocks were unable to hold on to early gains Thursday, reversing course in the late morning before finishing firmly in the red.

The Dow plunged 405.89 points or 1.45 percent to finish at 27,534.58, while the NASDAQ tumbled 221.97 points or 1.99 percent to end at 10,919.59 and the S&P 500 dropped 59.77 points or 1.76 percent to close at 3,339.19.

Strength among tech stocks contributed to the early advance on Wall Street, but they also helped to lead the subsequent pullback by the markets.

Adding to the negative sentiment, Senate Republicans failed to advance a new coronavirus stimulus bill. Facing unanimous opposition from Democrats, the bill couldn't clear a key procedural hurdle in the latest sign of the difficulty lawmakers have had in passing a new relief package.

In economic news, the Labor Department said initial jobless claims were roughly unchanged last week, defying expectations for a notable decline. Also, the Labor Department said producer prices increased slightly more than expected last month.

Crude oil prices drifted lower Thursday after data showed an increase in U.S. crude inventories last week, while easing of output curbs by OPEC+ also contributed to oil's weakness. West Texas Intermediate Crude oil futures for October ended down $0.75 or 2 percent at $37.30 a barrel.

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