Win Streak May End For South Korea Stock Market

(RTTNews) - Ahead of Wednesday's Labor Day holiday, the South Korea stock market had moved higher in three straight sessions, collecting almost 65 points or 2.5 percent along the way. The KOSPI now sits just above the 2,690-point plateau although the rally may stall on Thursday.

The global forecast for the Asian markets is soft following the Federal Reserve's rate decision and statement. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KOSPI finished slightly higher on Tuesday following mixed performances from the technology and chemical companies, while the financials and industrials were soft.

For the day, the index added 4.62 points or 0.17 percent to finish at 2,692.06 after trading between 2,687.29 and 2,710.23. Volume was 450 million shares worth 11.1 trillion won. There were 439 gainers and 408 decliners.

Among the actives, Shinhan Financial fell 0.43 percent, while KB Financial retreated 1.31 percent, Hana Financial tumbled 1.68 percent, Samsung Electronics climbed 1.04 percent, Samsung SDI rallied 3.09 percent, LG Electronics rose 0.11 percent, SK Hynix dropped 0.97 percent, Naver eased 0.16 percent, LG Chem jumped 1.77 percent, Lotte Chemical dipped 0.19 percent, S-Oil lost 0.68 percent, SK Innovation declined 1.42 percent, POSCO shed 0.49 percent, SK Telecom perked 0.20 percent, KEPCO sank 0.70 percent, Hyundai Mobis slumped 0.44 percent, Hyundai Motor slid 0.20 percent and Kia Motors lost 0.25 percent.

The lead from Wall Street offers little guidance as the major averages were flat on Wednesday until a spike following the Federal Reserve's monetary policy announcement. It faded quickly, however, and the markets finished mixed and little changed.

The Dow gained 87.37 points or 0.23 percent to finish at 37,903.29, while the NASDAQ slumped 52.34 points or 0.33 percent to end at 15,605.48 and the S&P 500 lost 17.30 points or 0.34 percent to close at 5,018.39.

The late-day volatility came after the Fed announced its widely expected decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective.

Members of the Fed also reiterated they need greater confidence inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

On the economic data front, payroll processor ADP released a report showing private sector employment increased by more than expected in the month of April.

Oil prices fell to a seven-week low on Wednesday after data showed an unexpected sharp jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93 at $79.00 a barrel, the lowest settlement since March 12.