Tech Shares May Boost South Korea Stock Market

The South Korea stock market on Wednesday snapped the two-day losing streak in which it had fallen more than 40 points or 1.3 percent. The KOSPI now rests just beneath the 2,945-point plateau and it may tick higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic on easing concerns for the outlook for interest rates. The European markets were up and the U.S. bourses were mostly higher and the Asian markets are also tipped to open in the green.

The KOSPI finished modestly higher on Wednesday following gains from the automobile producers and chemical companies, while the financials and technology shares were mixed.

For the day, the index climbed 28.03 points or 0.96 percent to finish at 2,944.41 after trading between 2,909.47 and 2,953.33. Volume was 743 million shares worth 12.1 trillion won. There were 700 gainers and 168 decliners.

Among the actives, Shinhan Financial advanced 0.91 percent, while KB Financial declined 1.65 percent, Hana Financial dipped 0.23 percent, Samsung Electronics fell 0.29 percent, LG Electronics retreated 1.61 percent, SK Hynix added 0.55 percent, Naver rallied 2.69 percent, Samsung SDI climbed 1.21 percent, LG Chem jumped 1.51 percent, Lotte Chemical gathered 0.63 percent, S-Oil tumbled 1.78 percent, SK Innovation advanced 0.97 percent, POSCO perked 0.93 percent, SK Telecom gained 0.67 percent, KEPCO spiked 2.70 percent, Hyundai Motor accelerated 3.18 percent and Kia Motors soared 2.43 percent.

The lead from Wall Street is mostly upbeat as the NASDAQ opened higher and remained solidly in the green. The Dow and S&P spent much of the day in negative territory, with the later managing to climb into positive territory and the former closing just under the line.

The Dow eased 0.53 points to finish at 34,377.81, while the NASDAQ jumped 105.71 points or 0.73 percent to close at 14,571.63 and the S&P 500 rose 13.15 points or 0.30 percent to end at 4,363.80.

The higher close on Wall Street came as a report from the Labor Department showed consumer prices rose by slightly more than expected in September, but the data was not seen as likely to accelerate the Federal Reserve's tapering plans.

Also, the minutes of the Fed's September meeting outlined the central bank's plans to gradually scale back its asset purchases. Participants generally agreed that a gradual tapering of asset purchases that concludes around the middle of next year would likely be appropriate if the economic recovery remained broadly on track.

Crude oil prices drifted lower on Wednesday, weighed down by concerns the slowdown in global economic growth could weaken the outlook for energy demand. West Texas Intermediate Crude oil futures for November eased $0.20 or 0.3 percent at $80.44 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT