South Korea Shares May Run Out Of Steam On Thursday

(RTTNews) - The South Korea stock market has finished higher in two straight sessions, collecting almost 60 points or 2.7 percent along the way. The KOSPI sits just above the 2,215-point plateau although it may spin its wheels on Thursday.

The global forecast for the Asian markets is soft on recession fears and concerns about the outlook for interest rates. The European and U.S. markets were modestly lower and the Asian bourses are tipped to follow suit.

The KOSPI finished slightly higher on Wednesday as gains from the financials, chemicals and oil companies were offset by weakness from the automobile producers and a mixed picture from the technology shares.

For the day, the index rose 5.84 points or 0.26 percent to finish at 2,215.22 after trading between 2,204.03 and 2,253.93. Volume was 847.91 million shares worth 9.34 trillion won. There were 633 decliners and 248 gainers.

Among the actives, Shinhan Financial climbed 1.16 percent, while KB Financial surged 4.03 percent, Hana Financial spiked 2.68 percent, Samsung Electronics strengthened 1.45 percent, Samsung SDI rallied 2.34 percent, LG Electronics slumped 1.86 percent, SK Hynix skyrocketed 4.18 percent, Naver plummeted 7.08 percent, LG Chem advanced 0.90 percent, Lotte Chemical jumped 1.67 percent, S-Oil soared 2.39 percent, SK Innovation improved 1.62 percent, POSCO perked 0.22 percent, KEPCO declined 1.51 percent, Hyundai Mobis accelerated 2.27 percent, Hyundai Motor retreated 1.39 percent, Kia Motors tumbled 2.34 percent and SK Telecom was unchanged.

The lead from Wall Street suggests mild consolidation as the major averages opened sharply lower but clawed their way back as the day progressed to end only slightly in the red.

The Dow shed 42.45 points or 0.14 percent to finish at 30,273.87, while the NASDAQ lost 27.77 points or 0.25 percent to end at 11,148.64 and the S&P 500 dipped 7.65 points or 0.20 percent to close at 3,783.28.

The early weakness on Wall Street came as central banks around the world appear poised to continue raising interest in the months ahead, potentially tipping the global economy into a recession as they combat elevated inflation.

A rebound by treasury yields also weighed on the markets, with the yield on the benchmark 10-year note regaining ground after easing in the two previous sessions. Selling pressure waned over the course of the session, however, as traders may feel the economic worries have been overdone.

Upbeat U.S. economic data has added to worries the Federal Reserve will continue to aggressively raising interest rates going into the end of the year as payroll processor ADP said private sector employment in the U.S. increased slightly more than expected in September.

Crude oil prices climbed higher on Wednesday after OPEC agreed to impose output cuts, aiming to spur a recovery in oil prices. West Texas Intermediate Crude oil futures for November climbed $1.24 or 1.4 percent at $87.76 a barrel.