Renewed Consolidation Anticipated For South Korea Shares

(RTTNews) - The South Korea stock market on Wednesday snapped the two-day slide in which it had fallen more than 30 points or 1.3 percent. The KOSPI now rests just beneath the 2,330-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets is negative on concerns about the outlook for interest rates. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The KOSPI finished modestly higher on Wednesday as gains from the technology stocks and automobile producers were capped by weakness from the financial sector.

For the day, the index gained 10.85 points or 0.47 percent to finish at 2,328.61 after trading between 2,312.49 and 2,341.19. Volume was 303 million shares worth 5.9 trillion won. There were 550 gainers and 298 decliners.

Shinhan Financial tanked 2.81 percent, while KB Financial declined 1.74 percent, Hana Financial skidded 1.11 percent, Samsung Electronics eased 0.17 percent, LG Electronics gained 0.77 percent, SK Hynix advanced 0.75 percent, Naver improved 1.71 percent, LG Chem rose 0.58 percent, Lotte Chem added 0.60 percent, S-Oil slumped 1.43 percent, SK Innovation advanced 0.91 percent, POSCO jumped 1.57 percent, SK Telecom strengthened 1.45 percent, KEPCO retreated 1.13 percent, Hyundai Motor rallied 2.51 percent, Hyundai Mobis spiked 2.94 percent and Kia Corporation accelerated 1.40 percent.

The lead from Wall Street is soft as the major averages opened lower on Wednesday, flirted with the unchanged line before finally ending with modest losses.

The Dow tumbled 208.54 points or 0.67 percent to finish at 30,772.79, while the NASDAQ eased 17.15 points or 0.15 percent to end at 11,247.58 and the S&P 500 fell 17.02 points or 0.45 percent to close at 3,801.78.

The early weakness on Wall Street came as a Labor Department report showing a bigger than expected increase in U.S. consumer prices added to concerns about the outlook for interest rates.

The bigger than expected jump in inflation has solidified expectations the Federal Reserve will raise interest rates by 75 basis points later this month and increases the likelihood of another 75-basis point rate hike in September.

Later in the day, the Fed released its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, which noted U.S. economic activity has expanded at a modest pace since mid-May.

Crude oil prices shrugged off a surge in U.S. inflation and climbed higher on Wednesday, rebounding smartly after suffering a sharp loss in the previous session. West Texas Intermediate Crude oil futures for August ended higher by $0.46 at $96.30 a barrel.