KOSPI May Crack Resistance At 2,500 Points

(RTTNews) - The South Korea stock market on Tuesday ended the three-day winning streak in which it had climbed more than 40 points or 1.6 percent. The KOSPI now sits just shy of the 2,490-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is positive on optimism that the U.S. and China may scale back their tariff talk. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The KOSPI finished slightly lower on Tuesday following losses from the technology stocks and automobile producers, while the chemicals were up and the financial sector was mixed.

For the day, the index dipped 1.78 points or 0.07 percent to finish at 2,486.64. Volume was 408 million shares worth 6.1 trillion won. There were 460 gainers and 414 decliners.

Among the actives, Shinhan Financial shed 0.51 percent, while KB Financial collected 0.72 percent, Hana Financial perked 0.17 percent, Samsung Electronics sank 0.72 percent, Samsung SDI dipped 0.28 percent, LG Electronics dropped 0.85 percent, SK Hynix retreated 1.59 percent, Naver rallied 3.31 percent, LG Chem rose 0.38 percent, Lotte Chemical added 0.49 percent, SK Innovation lost 0.54 percent, POSCO Holdings gained 0.40 percent, SK Telecom strengthened 1.38 percent, KEPCO was up 0.20 percent, Hyundai Mobis skidded 1.23 percent, Hyundai Motor slumped 0.91 percent and Kia Motors declined 1.36 percent.

The lead from Wall Street is upbeat as the major averages opened higher and improved as the day progressed, ending near session highs.

The Dow surged 1,016.57 points or 2.66 percent to finish at 39,186.98, while the NASDAQ rallied 429.52 points or 2.71 percent to close at 16,300.42 and the S&P 500 jumped 129.56 points or 2.51 percent to end at 5,287.76.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop on Monday, amid lingering trade war concerns and President Donald Trump's continued attacks on Federal Reserve Chair Jerome Powell.

Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.

The markets also benefitted from positive earnings news from the likes of 3M (MMM) and aircraft engine supplier GE Aerospace (GE), which both beat the street.

Crude oil moved sharply higher on Tuesday after the Treasury Department announced new sanctions against Iran. West Texas Intermediate crude for May delivery surged $1.23 or 2.0 percent to $64.31 a barrel.