Win Streak Expected To End For South Korea Shares

(RTTNews) - The South Korea stock market has moved higher in two straight sessions, advancing more than 45 points or 1.8 percent along the way. The KOSPI now rests just above the 2,470-point plateau although it may be stuck in neutral on Thursday.

The global forecast for the Asian markets is broadly negative on inflation and interest rate concerns. The European and U.S. markets were down on Wednesday and now the Asian markets are expected to open in similar fashion.

The KOSPI finished modestly higher on Wednesday following gains from the industrials, chemicals and technology stocks, while the oil companies were down and the financials were mixed.

For the day, the index advanced 21.12 points or 0.86 percent to finish at 2,472.05 after trading between 2,426.14 and 2,473.75. Volume was 397 million shares worth 8.7 trillion won. There were 538 gainers and 281 decliners.

Among the actives, Shinhan Financial jumped 2.09 percent, while KB Financial fell 0.30 percent, Hana Financial collected 1.16 percent, Samsung Electronics strengthened 1.53 percent, Surged 3.46 percent, LG Electronics spiked 3.59 percent, SK Hynix rallied 2.15 percent, Naver gained 0.84 percent, LG Chem soared 3.44 percent, Lotte Chemical added 0.57 percent, S-Oil plunged 3.33 percent, SK Innovation tumbled 3.31 percent, POSCO perked 0.39 percent, SK Telecom rose 0.19 percent, KEPCO climbed 0.96 percent, Hyundai Motor added 0.26 percent and Kia Motors advanced 0.87 percent.

The lead from Wall Street is soft as the major averages shook off a positive open on Wednesday, hugging the line for much of the day before a late slide pushed them firmly into the red for the fourth straight session.

The Dow tumbled 280.44 points or 0.88 percent to finish at 31,510.43, while the NASDAQ slumped 66.93 points or 0.56 percent to close at 11,816.20 and the S&P 500 sank 31.16 points or 0.78 percent to end at 3,955.00.

The continued weakness on Wall Street reflected lingering concerns about higher interest rates following some hawkish comments from Federal Reserve officials.

Exacerbating those concerns, Eurozone inflation hit a new record in August and added further pressure on the European Central Bank to tighten policy more aggressively as soon as next week.

In economic news, payroll processor ADP said that private sector employment in the U.S. increased by much less than expected in August.

Crude oil prices saw further downside on Wednesday, extending recent losses on concerns about the outlook for the global economy after the Eurozone's record high inflation report. West Texas Intermediate for October delivery tumbled $2.09 or 2.3 percent to $89.55 a barrel.

Closer to home, South Korea will release final Q2 numbers for gross domestic product this morning. In the three months prior, GDP expanded 0.6 percent on quarter and 3.0 percent on year.

South Korea also will see August figures for imports, exports and trade balance. Imports are expected to jump 22.9 percent on year, up from 21.8 percent in July. Exports are called higher by an annual 5.5 percent, down from 9.4 percent in the previous month. The trade deficit is pegged at $8 billion following the $4.67 billion shortfall a month earlier.