South Korea Shares May Run Out Of Steam

(RTTNews) - The South Korea stock market has moved higher three straight sessions, accelerating more than 90 points or 3.6 percent along the way. The KOSPI now sits just above the 2,490-point plateau although investors may lock in gains on Wednesday.

The global forecast for the Asian markets is negative on renewed concerns about the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KOSPI finished slightly higher on Monday following mixed performances from the financial shares, chemical companies, technology stocks and industrials.

For the day, the index rose 3.46 points or 0.14 percent to finish at 2,492.10 after trading between 2,492.09 and 2,521.86. Volume was 400.83 million shares worth 9.23 trillion won. There were 444 gainers and 425 decliners.

Among the actives, KB Financial collected 0.12 percent, while Hana Financial dipped 0.17 percent, Samsung Electronics dropped 0.89 percent, Samsung SDI climbed 1.00 percent, LG Electronics rose 0.23 percent, SK Hynix stumbled 2.40 percent, Naver eased 0.24 percent, LG Chem fell 0.39 percent, Lotte Chemical added 0.33 percent, SK Innovation soared 3.03 percent, POSCO Holdings perked 0.19 percent, SK Telecom gained 0.36 percent, KEPCO rallied 2.35 percent, Hyundai Mobis jumped 1.84 percent, Hyundai Motor dipped 0.24 percent, Kia Motors slumped 1.39 percent and Shinhan Financial was unchanged.

The lead from Wall Street is bleak as the major averages opened slightly higher on Tuesday but quickly turned lower and finished deep in the red.

The Dow stumbled 178.20 points or 0.42 percent to finish at 42,528.36, while the NASDAQ plummeted 375.30 points or 1.89 percent to close at 19,489.68 and the S&P 500 sank 66.35 points or 1.11 percent to end at 5,909.03.

The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark 10-year note surging to its highest closing level in eight months.

The jump by treasury yields, which led to concerns about the outlook for interest rates, came following the release of some upbeat U.S. economic data.

The Institute for Supply Management said U.S. service sector activity increased more than expected in December. The report also said the prices index surged to a one-year high, leading to concerns that inflation will remain sticky. Also, the Labor Department said job openings in the U.S. unexpectedly increased in November.

Oil prices climbed higher Tuesday amid a possible supply shortage after China decided to reject imports from Iran and Russia, while unusually cold weather in the U.S. also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for February closed up $0.69 or 0.94 percent at $74.25 a barrel.

Closer to home, South Korea will see November numbers for current account later this morning; in October, the current account surplus was $9.78 billion.