KOSPI May Test Support At 2,500 Points

(RTTNews) - The South Korea stock market on Wednesday halted the three-day winning streak in which it had gathered almost 55 points or 2.2 percent. The KOSPI now rests just above the 2,515-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets suggests consolidation over the outlook for interest rates and likely selling in the retail sector. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KOSPI finished modestly lower on Wednesday as losses from the automobile producers and chemicals were mitigated by support from the financial sector.

For the day, the index slipped 17.05 points or 0.67 percent to finish at 2,516.47 after trading between 2,512.01 and 2,543.15. Volume was 410 million shares worth 7.04 trillion won. There were 633 decliners and 229 gainers.

Among the actives, Shinhan Financial advanced 0.84 percent, while KB Financial perked 0.19 percent, Hana Financial collected 0.26 percent, Samsung Electronics dropped 0.98 percent, Samsung SDI fell 0.47 percent, LG Electronics strengthened 1.47 percent, SK Hynix added 0.41 percent, Naver lost 0.58 percent, LG Chem slumped 0.60 percent, Lotte Chemical retreated 1.34 percent, S-Oil jumped 1.90 percent, SK Innovation soared 3.19 percent, SK Telecom skidded 1.16 percent, Hyundai Mobis shed 0.46 percent, Hyundai Motor plummeted 3.80 percent, Kia Motors plunged 4.02 percent and POSCO and KEPCO were unchanged.

The lead from Wall Street is negative as the major averages opened lower on Wednesday, pared the losses as the day progressed but still ended firmly in the red.

The Dow dropped 171.69 points or 0.50 percent to finish at 33,980.32, while the NASDAQ tumbled 164.43 points or 1.25 percent to close at 12,938.12 and the S&P 500 slumped 31.16 points or 0.72 percent to end at 4,274.04.

The failed recovery attempt came after the Federal Reserve released the minutes of its latest monetary policy meeting, which some traders seemed to interpret as pointing to a slowdown in the pace of interest rate hikes. But the Fed minutes reaffirmed the central bank's plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.

Quarterly results from Target (TGT) also weighed on the markets after reporting earnings fell well short of estimates as it cut prices in an effort to reduce excess inventory.

Traders were also reacting to a Commerce Department report showing U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.

Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week. West Texas Intermediate Crude oil futures for September ended higher by $1.58 or 1.8 percent at $88.11 a barrel.