Rally May Stall For South Korea Stock Market

(RTTNews) - The South Korea stock market has moved higher in three straight sessions, collecting almost 40 points or 1.6 percent along the way. The KOSPI now rests just beneath the 2,525-point plateau although investors figure to cash in on Wednesday.

The global forecast for the Asian markets suggests consolidation on concerns over interest rates and possible recession. The European and U.S. markets were firmly lower and the Asian markets are tipped to follow that lead.

The KOSPI finished modestly higher on Tuesday following gains from the financial shares, technology stocks and industrials.

For the day, the index advanced 22.86 points or 0.91 percent to finish at 2,524.39 after trading between 2,503.21 and 2,524.42. Volume was 691.3 million shares worth 9.79 trillion won. There were 638 gainers and 248 decliners.

Among the actives, Shinhan Financial strengthened 1.43 percent, while Hana Financial collected 1.07 percent, Samsung Electronics added 0.31 percent, Samsung SDI gathered 1.30 percent, LG Electronics perked 0.18 percent, SK Hynix climbed 0.78 percent, Naver added 0.47 percent, LG Chem gained 0.81 percent, Lotte Chemical rallied 2.20 percent, S-Oil shed 0.67 percent, SK Innovation surged 3.93 percent, POSCO improved 1.33 percent, SK Telecom advanced 0.94 percent, KEPCO jumped 2.03 percent, Hyundai Mobis soared 2.53 percent, Hyundai Motor accelerated 2.03 percent, Kia Motors spiked 2.84 percent and KB Financial was unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower and moved deeper into the red as the day progressed, ending near session lows.

The Dow tumbled 367.17 points or 1.08 percent to finish at 33,684.17, while the NASDAQ sank 132.09 points or 1.08 percent to end at 12,080.51 and the S&P 500 dropped 48.29 points or 1.16 percent to close at 4,119.58.

The sell-off on Wall Street came as some traders looked to cash in on recent strength in the markets ahead of the Federal Reserve's monetary policy announcement later today.

With the Fed widely expected to raise interest rates by another 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for rates.

Concerns about lawmakers' struggles to reach an agreement on raising the U.S. debt ceiling also weighed on Wall Street. U.S. Treasury Secretary Janet Yellen has warned the Treasury might run out of money to cover obligations by June 1.

In economic news, the Commerce Department said new orders for U.S. manufactured goods increased more than expected in March. Also, the Labor Department showed job openings in the U.S. fell more than expected in March.

Crude oil prices tumbled on Tuesday on concerns about the outlook for energy demand amid fears of a potential recession in the U.S. West Texas Intermediate Crude oil futures for June ended lower by $4.00 or 5.3 percent to $71.66 a barrel, the lowest close since March 24.