KOSPI May Crack Resistance At 3,200 Points

(RTTNews) - The South Korea stock market has alternated between positive and negative finishes through the last six trading days since the end of the two-day winning streak in which it had climbed almost 40 points or 1.2 percent. The KOSPI now sits just beneath the 3,185-point plateau and it may extend its gains on Thursday.

The global forecast for the Asian markets is upbeat on optimism for trade deals. The European and U.S. markets were solidly higher and the Asian bourses are expected to follow that lead.

The KOSPI finished modestly higher on Wednesday following gains from the technology and industrial stocks, while the financials were mixed.

For the day, the index gained 13.83 points or 0.44 percent to finish at 3,183.77. Volume was 655.24 million shares worth 11.89 trillion won. There were 497 decliners and 390 gainers.

Among the actives, Shinhan Financial dipped 0.15 percent, while KB Financial collected 0.61 percent, Hana Financial fell 0.44 percent, Samsung Electronics added 0.61 percent, Samsung SDI strengthened 1.48 percent, LG Electronics rallied 2.86 percent, SK Hynix perked 0.19 percent, Naver retreated 1.49 percent, Lotte Chemical stumbled 2.76 percent, SK Innovation jumped 2.11 percent, POSCO Holdings soared 3.72 percent, SK Telecom sank 0.71 percent, KEPCO shed 0.55 percent, Hyundai Mobis spiked 2.05 percent, Hyundai Motor accelerated 7.51 percent, Kia Motors skyrocketed 8.49 percent and LG Chem was unchanged.

The lead from Wall Street is strong as the major averages opened with modest gains on Wednesday but continued to climb as the day progressed, ending at session highs.

The Dow surged 507.85 points or 1.14 percent to finish at 45,010.29, while the NASDAQ jumped 127.33 points or 0.61 percent to close at a record 21,020.02 and the S&P 500 gained 49.29 points or 0.78 percent to end at 6,358.91, also a record.

The strength on Wall Street came after President Donald Trump announced trade deals with Japan and the Philippines.

The announcement of these trade deals spurred expectations of further trade agreements as the Aug. 1 deadline nears.

On the U.S. economic front, a report released by the National Association of Realtors showed existing home sales in the U.S. pulled back by more than expected in the month of June.

Crude oil prices dipped slightly on Wednesday as uncertainty persists in U.S. trade talks ahead of the deadline. West Texas Intermediate crude for September delivery eased $0.06 to $65.25 per barrel.

Closer to home, South Korea will on Thursday release preliminary Q2 figures for gross domestic product later this morning. GDP is expected to add 0.6 percent on quarter and 0.4 percent on year after the 0.2 percent quarterly contraction and the flat annualized reading in the three months prior.