Additional Support Anticipated For South Korea Shares

(RTTNews) - The South Korea stock market on Wednesday halted the three-day losing streak in which it had slumped more than 35 points or 1.2 percent. The KOSPI now sits just beneath the 3,225-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is positive on continued optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to at least open in similar fashion, although profit taking may be in order later in the day.

The KOSPI finished sharply higher on Wednesday following gains from the technology, chemical and industrial sectors, while the financials were soft.

For the day, the index climbed 34.46 points or 1.08 percent to finish at 3,224.37. Volume was 316.4 million shares worth 10.2 trillion won. There were 470 decliners and 410 gainers.

Among the actives, Shinhan Financial sank 0.86 percent, while KB Financial collected 0.44 percent, Hana Financial eased 0.12 percent, Samsung Electronics climbed 1.13 percent, Samsung SDI strengthened 1.50 percent, LG Electronics rallied 3.16 percent, SK Hynix soared 3.35 percent, Naver advanced 0.90 percent, LG Chem improved 1.45 percent, Lotte Chemical increased 1.34 percent, SK Innovation rose 0.38 percent, POSCO Holdings added 0.98 percent, SK Telecom lost 0.36 percent, KEPCO spiked 2.59 percent, Hyundai Mobis gained 1.18 percent, Hyundai Motor accelerated 1.41 percent and Kia Motors was up 1.38 percent.

The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and largely spent the day in positive territory.

The Dow surged 463.66 points or 1.04 percent to finish at 44,922.27, while the NASDAQ added 31.24 points or 0.14 percent to close at a record 21,713.14 and the S&P 500 rose 20.82 points or 0.32 percent to end at 6,466.58, also a record.

The early strength on Wall Street came as stocks continued to benefit from optimism about an interest rate cut by the Federal Reserve following Tuesday's consumer price inflation data.

With the consumer price inflation data largely coming in line with economist estimates, the Fed is widely expected to lower rates by a least a quarter point next month.

CME Group's FedWatch Tool is currently indicating a 93.8 percent chance the Fed will cut rates by 25 basis points in September.

Crude oil prices fell on Wednesday after the International Energy Agency projected oversupply in the market this year due to surging supply from oil producers. West Texas Intermediate crude for September delivery was down $0.55 or 0.87 percent at $62.62 per barrel.