South Korea Shares Expected To Open Under Pressure

(RTTNews) - The South Korea stock market has moved higher in consecutive trading days, collecting more than 25 points or 1 percent along the way. The KOSPI now sits just above the 2,460-point plateau although the rally may stall on Thursday.

The global forecast for the Asian markets is broadly negative on geopolitical concerns and the dimming outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are expected to open in similar fashion.

The KOSPI finished slightly higher on Wednesday following gains from the financials, automobile producers and technology stocks.

For the day, the index rose 2.43 points or 0.10 percent to finish at 2,462.60 after trading between 2,450.78 and 2,465.33. Volume was 899.4 million shares worth 8.75 trillion won. There were 475 decliners and 390 gainers.

Among the actives, Shinhan Financial surged 3.12 percent, while KB Financial soared 2.30 percent, Hana Financial spiked 1.97 percent, Samsung Electronics strengthened 1.59 percent, Samsung SDI tanked 2.29 percent, LG Electronics added 0.38 percent, Naver skidded 1.17 percent, LG Chem stumbled 1.94 percent, Lotte Chemical sank 1.38 percent, S-Oil rallied 1.53 percent, SK Innovation tumbled 1.60 percent, POSCO shed 0.60 percent, SK Telecom perked 0.20 percent, KEPCO lost 0.58 percent, Hyundai Mobis improved 1.56 percent, Hyundai Motor accelerated 1.75 percent, Kia Motors jumped 1.94 percent and SK Hynix was unchanged.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained in the red throughout the day.

The Dow tumbled 332.57 points or 0.98 percent to finish at 33,665.08, while the NASDAQ dropped 219.44 points or 1.39 percent to close at 13,314.30 and the S&P 500 sank 58.60 points or 1.34 percent to end at 4,314.60.

The weakness on Wall Street came amid rising tensions in the Middle East after a deadly missile attack on Al-Ahli Baptist Hospital in Gaza killed several hundred people.

Hamas tried to attribute the blast to an Israeli airstrike, but the Israeli military said with some evidence it was not involved and the explosion was caused by a misfired Palestinian rocket.

Higher bond yields added to the negative sentiment raising concerns about the outlook for interest rates.

On the U.S. economic front, the Commerce Department noted a substantial rebound in new residential construction in the U.S. in September.

Crude oil prices rose sharply Wednesday on rising concerns over supplies as geopolitical concerns escalated after the large explosion at the Gaza hospital. West Texas Intermediate Crude oil futures for November jumped $1.66 or 1.9 percent at $88.32 a barrel.

Closer to home, the Bank of Korea will wrap up its monetary policy meeting today and announce its decision on interest rates. The BoK is widely expected to keep its benchmark lending rate unchanged at 3.50 percent.