KOSPI Expected To Open To The Upside

(RTTNews) - The South Korea stock market has moved higher in two of three trading days since the end of the three-day losing streak in which it had stumbled more than 100 points or 2.8 percent. The KOSPI now sits just above the 3,455-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The KOSPI finished modestly higher on Wednesday following gains from the chemicals and mixed performances from the financial shares, technology stocks and industrial issues.

For the day, the index advanced 31.23 points or 0.91 percent to finish at 3,455.83. Volume was 488.7 million shares worth 12.2 trillion won. There were 476 decliners and 385 gainers.

Among the actives, Shinhan Financial shed 0.42 percent, while KB Financial collected 0.69 percent, Hana Financial sank 0.80 percent, Samsung Electronics accelerated 2.50 percent, Samsung SDI rose 0.23 percent, LG Electronics lost 0.66 percent, SK Hynix spiked 3.60 percent, Naver plunged 5.21 percent, LG Chem rallied 2.68 percent, Lotte Chemical gathered 0.30 percent, SK Innovation slumped 0.60 percent, POSCO Holdings slipped 0.36 percent, SK Telecom perked 0.18 percent, KEPCO retreated 1.39 percent, Hyundai Mobis skidded 1.01 percent, Hyundai Motor improved 0.23 percent and Kia Motors was down 0.10 percent.

The lead from Wall Street remains cautiously optimistic as the major averages opened lower on Wednesday but trended higher through the session and ended with modest gains.

The Dow added 43.21 points or 0.09 percent to finish at a record 46,441.10, while the NASDAQ gained 95.15 points or 0.42 percent to close at 22.755.16 and the S&P 500 rose 22.74 points or 0.34 percent to end at 6,711.20, also a record.

The initial pullback came after the U.S. government officially shut down early this morning after lawmakers failed to pass a temporary spending bill.

However, the early selling pressure was offset by optimism about the outlook for interest rates following the release of disappointing private sector employment data.

The subsequent turnaround also came as analysts pointed out that the markets have historically not been materially impacted by government shutdowns.

Crude oil prices fell sharply again Wednesday on concerns of excess supply after OPEC said it will hike output more than expected in November. West Texas Intermediate crude for November delivery was down by $0.60 or 0.96 percent at $61.77 per barrel.

Closer to home, South Korea will see September data for consumer prices later this morning, with forecasts suggesting an increase of 0.4 percent on month and 2.0 percent on year. That follows the 0.1 percent monthly decline and the 1.7 percent annual increase in August.