KOSPI May Run Out Of Steam On Tuesday

(RTTNews) - The South Korea stock market has moved higher in back-to-back sessions, advancing almost 50 points or 2 percent in that span. The KOSPI now sits just beneath the 2,610-point plateau although investors may lock in gains on Tuesday. The global forecast for the Asian markets is soft, ahead of key economic and earnings data later this week. The European markets were mixed and flat and the U.S. bourses were solidly lower and the Asian markets are tipped to follow the latter lead. The KOSPI finished sharply higher on Monday following gains from the financial shares and industrial issues, while the technology stocks were also largely in the green. For the day, the index jumped 40.67 points or 1.58 percent to finish at 2,610.38 after trading between 2,561.46 and 2,611.93. Volume was 336 million shares worth 10.2 trillion won. There were 618 gainers and 259 decliners. Among the actives, Shinhan Financial climbed 1.09 percent, while KB Financial surged 5.69 percent, Hana Financial collected 3.53 percent, Samsung Electronics added 0.66 percent, Samsung SDI strengthened 1.66 percent, LG Electronics stumbled 2.08 percent, SK Hynix skyrocketed 6.20 percent, Naver tanked 2.69 percent, LG Chem spiked 3.01 percent, Lotte Chemical rallied 4.92 percent, SK Innovation jumped 1.81 percent, POSCO soared 2.71 percent, SK Telecom dipped 0.18 percent, KEPCO slumped 1.09 percent, Hyundai Mobis lost 0.46 percent, Hyundai Motor accelerated 3.13 percent and Kia Motors improved 2.45 percent.

The lead from Wall Street is weak as the major averages opened lower on Monday and only moved lower as the day progressed, ending near session lows.

The Dow tumbled 398.51 points or 0.94 percent to finish at 41,954.24, while the NASDAQ plunged 213.95 points or 1.18 percent to close at 17,923.90 and the S&P 500 sank 55.13 points or 0.96 percent to end at 5,695.94.

The weakness on Wall Street came as traders reassessed their expectations for the outlook on interest rates. After Friday's upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7.

The mood is cautious as investors await readings on consumer price and producer price inflation later in the week, as well as earnings announcements from several top banks.

On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war.

Oil prices rose sharply on Monday amid the rising possibility of disruptions in supply in the Persian Gulf due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November jumped $2.76 or 3.71 percent at $77.14 a barrel, the highest close in nearly eight weeks.