KOSPI Predicted To Remain Rangebound On Wednesday

(RTTNews) - The South Korea stock market bounced higher again on Tuesday, one day after ending the three-day winning streak in which it had collected more than 45 points or 1.9 percent. The KOSPI now rests just above the 2,450-point plateau although it's likely to head south again on Wednesday.

The global forecast for the Asian markets is soft thanks to ongoing concerns over the economy and the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KOSPI finished sharply higher on Tuesday following gains from the financials, industrials and chemical companies.

For the day, the index climbed 24.04 points or 0.99 percent to finish at 2,450.93 after trading between 2,433.48 and 2,453.91. Volume was 327.21 million shares worth 6.69 trillion won. There were 647 gainers and 208 decliners.

Among the actives, Shinhan Financial advanced 0.99 percent, while KB Financial collected 0.81 percent, Hana Financial spiked 1.97 percent, Samsung Electronics rose 0.34 percent, Samsung SDI perked 0.35 percent, LG Electronics climbed 1.35 percent, SK Hynix improved 0.76 percent, Naver jumped 1.71 percent, LG Chem increased 1.16 percent, Lotte Chemical gained 0.58 percent, S-Oil shed 0.47 percent, POSCO surged 4.10 percent, SK Telecom strengthened 1.36 percent, KEPCO added 0.73 percent, Hyundai Mobis rallied 3.39 percent, Hyundai Motor accelerated 3.71 percent, Kia Motors soared 3.35 percent and SK Innovation was unchanged.

The lead from Wall Street is negative as the major averages shook off early support on Tuesday, quickly heading south and remaining in the red for the rest of the session.

The Dow tumbled 308.12 points or 0.96 percent to finish at 31,790.87, while the NASDAQ dropped 134.53 points or 1.12 percent to close at 11,883.14 and the S&P 500 sank 44.45 points or 1.10 percent to end at 3,986.16.

The extended sell-off reflected lingering concerns about the outlook for interest rates and the impact further rate hikes will have on the economy.

Stocks have been under pressure since Federal Reserve Chair Jerome Powell said last Friday that the central bank plans to continue aggressively raising interest rates. Powell suggested that even after the Fed finishes tightening monetary policy, rates will remain at higher levels to ensure inflation remains contained.

In economic news, the Conference Board said that consumer confidence rebounded by more than expected in August. Also, the Labor Department said the number of job openings was little changed at 11.2 million on the last business day of July.

The price of crude oil showed a substantial move to the downside during trading on Tuesday amid concerns higher interest rates will lead to a global economic slowdown, reducing energy demand. West Texas Intermediate crude for October delivery plunged $5.37 or 5 percent to $91.64 a barrel.

Closer to home, South Korea will provide July results for industrial production and retail sales later this morning. Output is expected to ease 0.1 percent on month and rise 2.9 percent on year after gaining 1.9 percent on month and 1.4 percent on year in June. Retail sales shed 0.9 percent on month and 1.5 percent on year in June.