South Korea Bourse Overdue For Profit Taking

(RTTNews) - The South Korea stock market has moved higher in seven straight sessions, collecting more than 90 points or 3.6 percent along the way. The KOSPI now rests just above the 2,565-point plateau and the rally may stall on Wednesday.

The global forecast for the Asian markets remains soft on increasing concerns over the Republican-manufactured U.S. debt ceiling confrontation. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The KOSPI finished modestly higher on Tuesday following gains from the energy companies and mixed performances from the financials and technology stocks.

For the day, the index gained 10.47 points or 0.41 percent to finish at 2,567.55 after trading between 2,561.10 and 2,577.32. Volume was 568.87 million shares worth 7.32 trillion won. There were 429 decliners and 425 gainers.

Among the actives, Shinhan Financial slid 0.14 percent, while KB Financial perked 0.10 percent, Hana Financial was down 0.24 percent, Samsung Electronics dipped 0.15 percent, Samsung SDI strengthened 1.43 percent, LG Electronics added 0.35 percent, SK Hynix fell 0.31 percent, Naver tumbled 1.40 percent, LG Chem spiked 2.71 percent, Lotte Chemical slipped 0.06 percent, S-Oil climbed 0.93 percent, SK Innovation jumped 1.83 percent, POSCO rallied 2.17 percent, SK Telecom improved 0.71 percent, KEPCO advanced 0.87 percent, Hyundai Mobis shed 0.22 percent, Kia Motors eased 0.11 percent and Hyundai Motor was unchanged.

The lead from Wall Street suggests consolidation as the major averages opened lower on Tuesday and spent much of the day hugging the line before slumping in the afternoon.

The Dow tumbled 231.07 points or 0.69 percent to finish at 33,055.51, while the NASDAQ sank 160.53 points or 1.26 percent to end at 12,560.25 and the S&P 500 dropped 47.05 points or 1.12 percent to close at 4,145.58.

The markets continue to be weighed by the debt ceiling negotiations. U.S. President Joe Biden and House Speaker Kevin McCarthy said they held productive talks but there was no agreement on how to raise the government's $31.4 trillion debt ceiling.

In economic news, the S&P Global US Composite PMI accelerated to its fastest pace in more than a year, while the Commerce Department said new home sales surprised much higher to the upside.

Crude oil futures advanced on speculation that OPEC might consider another production cut next month, and on a warning from Saudi Arabia's energy minister that oil prices will stop declining. West Texas Intermediate Crude oil futures for July rose $0.86 or 1.2 percent at $72.91 a barrel.