Rally May Stall For South Korea Stock Market

(RTTNews) - The South Korea stock market has tracked higher in four straight sessions, collecting more than 75 points or 2.9 percent along the way. The KOSPI now rests just above the 2,665-point plateau although it's due for consolidation on Wednesday.

The global forecast for the Asian markets is negative, with oil and technology stocks likely to lead the way lower. The European markets were down and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The KOSPI finished sharply higher on Tuesday following gains from the financial, chemical and automobile companies.

For the day, the index climbed 34.49 points or 1.30 percent to finish at 2,667.07. Volume was 483.9 million shares worth 15.7 trillion won. There were 626 gainers and 257 decliners.

Among the actives, Shinhan Financial accelerated 2.57 percent, while KB Financial soared 3.53 percent, Hana Financial collected 1.53 percent, Samsung Electronics rallied 1.86 percent, Samsung SDI rose 0.75 percent, LG Electronics increased 0.74 percent, SK Hynix strengthened 1.38 percent, Naver spiked 2.64 percent, LG Chem and SK Telecom both climbed 1.08 percent, Lotte Chemical surged 5.58 percent, S-Oil added 0.40 percent, SK Innovation plunged 3.94 percent, POSCO plunged 3.27 percent, KEPCO and Hyundai Motor both jumped 1.73 percent, Hyundai Mobis gained 1.29 percent and Kia Motors improved 0.73 percent.

The lead from Wall Street is weak as the major averages opened mixed on Tuesday and finished the same way.

The Dow advanced 71.15 points or 0.20 percent to finish at 35,630.68, while the NASDAQ sank 62.11 points or 0.43 percent to close at 14,283.91 and the S&P 500 fell 12.23 points or 0.27 percent to end at 4,576.73.

The modest weakness on Wall Street may partly have reflected profit taking, as some traders looked to cash in on the strong gains posted last month.

Overall trading activity remained somewhat subdued, however, as traders continued to look ahead to Friday's closely watched monthly jobs report.

In U.S. economic news, the Institute for Supply Management said U.S. manufacturing activity contracted for the ninth consecutive month in July. Also, the Commerce Department said construction spending rose slightly less than expected in June.

Crude oil futures ended lower on Tuesday thanks to a firm dollar and data showing a slowdown in global manufacturing activity. West Texas Intermediate Crude oil futures for September ended lower by $0.43 at $81.37 a barrel.

Closer to home, South Korea will provide July figures for consumer prices later today, with forecasts suggesting an increase of 0.2 percent on month and 2.4 percent on year. That follows the flat monthly reading and the 2.7 percent yearly gain in June.