Rebound Anticipated For South Korea Stock Market

(RTTNews) - The South Korea stock market on Monday snapped the five-day winning streak in which it had rallied almost 130 points or 4.3 percent to a three-year high. The KOSPI now rests just above the 3,010-point plateau although it's likely to bounce higher again on Tuesday. The global forecast for the Asian markets in positive on an improved outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished modestly lower on Monday following losses from the chemicals and industrials and mixed performances from the financial shares and technology stocks. For the day, the index shed 7.37 points or 0.24 percent to finish at 3,014.47 after trading as low as 2,971.36. Volume was 619.8.7 million shares worth 17.76 trillion won. There were 646 decliners and 265 gainers. Among the actives, Shinhan Financial strengthened 1.35 percent, while KB Financial collected 1.03 percent, Hana Financial fell 0.25 percent, Samsung Electronics stumbled 2.52 percent, Samsung SDI tanked 3.97 percent, LG Electronics advanced 0.95 percent, SK Hynix climbed 0.97 percent, Naver skyrocketed 7.61 percent, LG Chem plunged 4.26 percent, Lotte Chemical retreated 1.54 percent, SK Innovation added 0.39 percent, POSCO Holdings surrendered 3.43 percent, SK Telecom shed 0.36 percent, KEPCO tumbled 2.92 percent, Hyundai Mobis cratered 3.77 percent, Hyundai Motor plummeted 4.05 percent and Kia Motors slumped 2.84 percent.

The lead from Wall Street is upbeat as the major averages shook off early weakness, using a late-day surge to finish solidly in the green.

For the day, the Dow jumped 374.96 points or 0.89 percent to finish at 42,581.78, while the NASDAQ rallied 183.56 points or 0.94 percent to close at 19,630.97 and the S&P 500 climbed 57.33 points or 0.96 percent to end at 6,025.17.

The late rally came as Federal Reserve Vice Chair Michelle Bowman indicated support for a rate cut as early as July, citing concerns about the job market and potential easing of inflationary pressures related to tariffs. Additionally, reports of potential tariff reductions between the U.S. and China helped ease market anxieties.

The major averages had opened lower and hugged the unchanged line for much of the day as investors waited for Iran's response to the weekend U.S. air strikes on its nuclear sites.

In economic news, the National Association of Realtors said that existing home sales rose 0.8 percent on month in May and saw a 6.2 percent increase in unsold inventory. On a yearly basis, existing home sales fell 0.7 percent.

Crude oil prices were on a roller coaster ride on Monday, moving sharply higher earlier in the day in response to the U.S. bombing attack in Iran. But as it looks like Iran won't try to block the straight of Hormuz, prices plummeted later in the day. West Texas Intermediate crude for August delivery plunged $5.00 of 6.77 percent to $68.84 per barrel.