The South Korea stock market has moved higher now in two of three trading days since the end of the three-day losing streak in which it had retreated more than 30 points or 1.5 percent. The KOSPI closed just above the 1,995-point plateau, and now traders are looking for continued strength when the market opens on Wednesday.
The global forecast for the Asian markets is upbeat thanks to positive earnings figures and encouraging news regarding the budget woes in Washington. On the earnings front, DuPont, Travelers and Delta Air Lines all posted solid quarterly results. Also, President Barack Obama agreed to a bill that would tie an increase in the debt limit to the passage of a budget. The European markets were mixed and the U.S. bourses were higher, and the Asian markets figure to split the difference.
The KOSPI finished modestly higher on Tuesday on bargain hunting from the exporters in the technology and automobile sectors.
For the day, the index added 9.66 points or 0.49 percent to finish at 1,996.52 after trading between 1,981.88 and 1,999.35. There were 406 decliners and 401 gainers.
Among the actives, Woongjin Holdings surged by the 15 percent daily limit, while Samsung Electronics climbed 1.8 percent, Hyundai Motor jumped 1.9 percent, S&T Corp spiked 6.8 percent and Korea Gas Corp (KOGAS) plunged 6.8 percent.
The lead from Wall Street is positive as stocks moved higher on Tuesday, extending a recent move to the upside. The markets benefited from a positive reaction to the latest earnings news, although stocks initially were lackluster as traders expressed uncertainty about the outlook for the markets following the recent strength.
The latest batch of earnings news eventually some buying interest, with DuPont (DD), Travelers (TRV), and Delta Air Lines (DAL) all posting gains after reporting quarterly results.
Shares of DuPont rose by 1.8 percent after the chemical giant reported fourth quarter earnings that fell year-over-year but came in above analyst estimates. The company also forecast better than expected results in 2013.
Insurance giant Travelers ended the day up by 2.2 percent after reporting fourth quarter earnings that came in well above expectations. Delta advanced by 2.9 percent after its fourth quarter adjusted earnings matched estimates.
On the other hand, shares of Johnson & Johnson (JNJ) were down after the health care giant reported better than expected fourth quarter earnings but provided disappointing guidance.
The markets may have also benefited from a statement from the White House indicating that President Obama would not oppose a House Republican bill that would tie a short-term increase in the debt limit to the passage of a budget. The House is scheduled to vote on the bill later today.
Meanwhile, traders largely shrugged off a report from the National Association of Realtors showing an unexpected drop by existing home sales in December.
The major U.S. averages finished at their best levels of the day as the Dow rose 62.43 points or 0.5 percent to finish at 13,712.13, while the NASDAQ climbed 8.47 points or 0.3 percent to end at 3,143.18 and the S&P 500 advanced 6.53 points or 0.4 percent to close at 1,492.51. With the gains, the Dow and the S&P 500 reached new five-year closing highs, while the NASDAQ hit its best closing level in three months.
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