Win Streak May Continue For South Korea Shares

(RTTNews) - The South Korea stock market has moved higher in two straight sessions, collecting almost 60 points or 2.7 percent along the way. The KOSPI now rests just beneath the 2,220-point plateau and it may extend its gains again on Tuesday.

The global forecast for the Asian markets is upbeat on bargain hunting after several days of volatility and heavy selling, while stability in the bond markets adds to the positive sentiment. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The KOSPI finished slightly higher on Monday as gains from the technology and chemical companies were dented by weakness from the oil stocks and a mixed picture from the financial sector.

For the day, the index picked up 7.16 points or 0.32 percent to finish at 2,219.71 after trading between 2,177.66 and 2,221.05. Volume was 487 million shares worth 6.4 trillion won. There were 538 gainers and 322 decliners.

Among the actives, Shinhan Financial strengthened 1.40 percent, while KB Financial tumbled 1.82 percent, Hana Financial lost 0.39 percent, Samsung Electronics added 0.53 percent, LG Electronics rallied 1.24 percent, SK Hynix fell 0.31 percent, Naver advanced 0.91 percent, LG Chem rose 0.35 percent, Lotte Chemical gained 0.62 percent, S-Oil tanked 2.93 percent, SK Innovation dipped 0.32 percent, POSCO perked 0.61 percent, SK Telecom retreated 1.41 percent, Kia Motors shed 0.43 percent and Hyundai Motor, Hyundai Mobis and KEPCO were unchanged.

The lead from Wall Street is broadly positive as the major averages opened sharply higher on Monday and stayed that way throughout the session.

The Dow surged 550.99 points or 1.86 percent to finish at 30,185.82, while the NASDAQ soared 354.41 points or 3.43 percent to end at 10.675.80 and the S&P 500 jumped 94.88 points or 2.65 percent to close at 3,677.95.

An early pullback by treasury yields fueled the buying interest, although yields regained ground over the course of the session. The markets also benefitted from strong earnings news from financial giant Bank of America (BAC).

The strength also followed news that the U.K. government is reversing course on previously announced fiscal plans that contributed to turmoil in the global bond markets.

In economic news, the Federal Reserve Bank of New York reported that regional manufacturing activity contracted more than expected in October.

Crude oil futures slumped on Monday, extending losses from the previous session as worries about a recession weighed on the outlook for energy demand and pushed down oil prices. West Texas Intermediate Crude oil futures for November eased $0.15 or 0.2 percent at $85.46 a barrel.