The South Korean stock market has finished lower now in two straight sessions, falling more than 15 points or 0.7 percent along the way. The KOSPI remained just above the 2,130-point plateau, and now traders are looking for a large jump at the opening of trade on Wednesday.
The global forecast for the Asian markets is broadly positive following several days of heavy selling - due mainly to optimism for a resolution in the U.S. debt limit debate. Technology stocks are expected to fuel the rally, along with properties, oil companies and natural gas stocks - although profit taking may bring gold down from a record closing high. The European and U.S. markets finished firmly in the green, and the Asian bourses are expected to follow that lead.
The KOSPI finished flat on Tuesday as gains from the technology stocks were wiped out by selling from the oil companies.
For the day, the index eased 0.27 points or 0.01 percent to finish at 2,130.21 after trading between 2,123.43 and 2,140.44.
Among the actives, NHN climbed 3.3 percent, LG Display jumped 3.4 percent and Hynix Semiconductor climbed 1.7 percent, while SK Innovation plunged 5.7 percent, S-Oil plummeted 4.1 percent and GS Holdings shed 3.2 percent.
The lead from Wall Street is highly optimistic as stocks moved substantially higher on Tuesday, regaining some ground after trending lower in recent sessions. The markets benefited from upbeat news on a number of different fronts, including optimism about a potential resolution to the debt limit debate.
The early strength was partly due to the release of a report from the Commerce Department showing a much bigger than expected increase in housing starts in June. Housing starts jumped 14.6 percent to an annual rate of 629,000 in June from the revised May estimate of 549,000. Economists had expected housing starts to edge up to 575,000 from the 560,000 originally reported for May. Building permits, an indicator of future housing demand, also rose by 2.5 percent to an annual rate of 624,000 from the revised May rate of 609,000.
The markets also benefited from considerable strength that emerged in the technology sector on the heels of positive earnings news from tech giant IBM Corp. (IBM). Shares of IBM surged 5.7 percent to a record closing high.
Further buying interest was generated by remarks from U.S. President Barack Obama, who indicated that "some progress" has been made in the negotiations to raise the debt limit and avoid a default. Obama praised a deficit reduction proposal from a bipartisan group of senators that he said is "broadly consistent" with the approach he favors. The proposal from the so-called "Gang of Six" would reduce the nation's budget deficit by $3.7 trillion over ten years.
Meanwhile, shares of Bank of America (BAC) fell by 1.5 percent after the financial services giant reported a second quarter loss of $8.8 billion compared to a year-ago profit due to a settlement with investors and plunging revenues. Goldman Sachs (GS) also closed in the red after reporting Q2 earnings that rose to $1.85 per share but came in well below analyst estimates for $2.27 per share.
The major averages closed firmly in positive territory, not far off their best levels of the day. The Dow surged up by 202.26 points or 1.6 percent to 12,587.42, the NASDAQ jumped 61.41 points or 2.2 percent to 2,826.52 and the S&P 500 shot up 21.29 points or 1.6 percent to 1,326.73.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.