More Pain Predicted For South Korea Stock Market

(RTTNews) - The South Korea stock market has finished lower in three straight sessions, dropping more than 40 points or 1.7 percent along the way. The KOSPI now rests just above the 2,580-point plateau and it may take further damage again on Thursday.

The global forecast for the Asian markets is negative on renewed concerns over 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 lower on Wednesday as losses from the financials and technology stocks were mitigated by support from the automobile producers.

For the day, the index dropped 22.28 points or 0.86 percent to finish at 2,582.63. Volume was 644.16 million shares worth 10.21 trillion won. There were 678 decliners and 207 gainers 678.

Among the actives, Shinhan Financial declined 1.01 percent, while KB Financial tumble 1.99 percent, Hana Financial slumped 0.99 percent, Samsung Electronics retreated 1.26 percent, Samsung SDI skidded 1.00 percent, LG Electronics climbed 1.05 percent, SK Hynix sank 0.86 percent, Naver plunged 4.33 percent, LG Chem tanked 2.17 percent, Lotte Chemical plummeted 3.30 percent, S-Oil stumbled 1.67 percent, SK Innovation lost 1.30 percent, POSCO and KEPCO both dropped 0.91 percent, Hyundai Mobis rallied 1.37 percent, Hyundai Motor surged 3.08 percent, Kia Motors jumped 2.69 percent and SK Telecom was unchanged.

The lead from Wall Street remains weak as the major averages opened lower again on Wednesday and largely stayed that way, ending near session lows.

The Dow dropped 102.35 points or 0.30 percent to finish at 33,951.52, while the NASDAQ tumbled 165.10 points or 1.21 percent to close at 13,502.20 and the S&P 500 shed 23.02 points or 0.52 percent to end at 4,365.69.

Renewed concerns about the outlook for interest rates contributed to the weakness on Wall Street following remarks by Federal Reserve Chair Jerome Powell.

In testimony before the House Financial Services Committee, Powell reiterated the Fed is likely to continue raising interest rates in an effort to contain stubbornly elevated inflation.

The Fed left rates unchanged last week, but the central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6 percent by the end of 2023. If the Fed decided to revert to its recent quarter-point increases, the forecast suggests the central bank will raise rates two more times this year.

Crude oil prices climbed higher on Wednesday amid hopes about the outlook for demand in the U.S. and forecasts for a drawdown in U.S. crude stocks last week. West Texas Intermediate Crude oil futures for August ended higher by $1.34 at $72.53 a barrel, recovering from a low of $70.80.