Continued Consolidation Called For KOSPI

(RTTNews) - The South Korea stock market has finished lower in five straight sessions, slumping almost 110 points or 4.2 percent along the way. The KOSPI now sits just above the 2,560-point plateau and it's looking at another soft start again on Wednesday.

The global forecast for the Asian markets is negative amid concerns about the outlook for interest rates. The European markets were down and the U.S. bourses were mixed and the Asian markets are expected to split the difference.

The KOSPI finished slightly lower again on Tuesday as losses from the industrials and energy stocks were offset by gains from the financials and a mixed picture from the technology companies.

For the day, the index slipped 6.58 points or 0.26 percent to finish at 2,561.24 after trading between 2,556.00 and 2,599.37. Volume was 782.4 million shares worth 8.76 trillion won. There were 573 gainers and 288 decliners.

Among the actives, Shinhan Financial collected 0.81 percent, while KB Financial added 0.38 percent, Hana Financial advanced 0.97 percent, Samsung Electronics tumbled 2.35 percent, Samsung SDI and Hyundai Mobis both dropped 0.92 percent, LG Electronics slumped 1.11 percent, SK Hynix climbed 1.03 percent, Naver rallied 1.32 percent, LG Chem declined 1.57 percent, Lotte Chemical gained 0.36 percent, S-Oil fell 0.30 percent, SK Innovation slid 0.30 percent, POSCO retreated 1.92 percent, SK Telecom improved 0.72 percent, KEPCO surged 3.18 percent, Hyundai Motor eased 0.05 percent and Kia Motors rose 0.22 percent.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and largely stayed under water, although the NASDAQ managed to break barely into the green.

The Dow shed 157.85 points or 0.42 percent to finish at 37,525.16, while the NASDAQ rose 13.94 points or 0.09 percent to close at 14,857.71 and the S&P 500 slipped 7.04 points or 0.15 percent to end at 4,756.50.

The early weakness on Wall Street came as some traders looked to cash in on Monday's strong gains amid lingering uncertainty about the outlook for interest rates.

While the Federal Reserve is widely expected to leave interest rates unchanged later this month, traders have recently become increasingly skeptical about whether the central bank will cut rates in March.

In economic news, the Commerce Department released a report showing the U.S. trade deficit unexpectedly shrank in November.

Oil prices climbed higher on Tuesday as rising geopolitical risks raised concerns about possible supply and trade disruptions. West Texas Intermediate Crude oil futures for February settled higher by $1.47 at $72.24 a barrel.