Rebound Predicted For South Korea Stock Market

(RTTNews) - The South Korea stock market on Tuesday ended the modest two-day winning streak in which it had risen almost a dozen points or 0.6 percent. The KOSPI now sits just above the 2,275-point plateau although it's expected to find renewed support on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished sharply lower on Tuesday following losses from the technology stocks, oil companies and industrials, while the financials were mixed.

For the day, the index stumbled 32.56 points or 1.41 percent to finish at 2,277.99 after trading between 2,273.97 and 2,322.45. Volume was 387.6 million shares worth 8 trillion won. There were 639 decliners and 252 gainers.

Among the actives, Shinhan Financial jumped 1.91 percent, while KB Financial collected 0.78 percent, Hana Financial skidded 1.13 percent, Samsung Electronics shed 0.59 percent, Samsung SDI plummeted 5.86 percent, LG Electronics tumbled 3.30 percent, SK Hynix surrendered 2.35 percent, Naver improved 0.70 percent, LG Chem slumped 1.12 percent, Lotte Chemical rose 0.21 percent, S-Oil stumbled 4.73 percent, SK Innovation tanked 2.94 percent, POSCO plunged 4.97 percent, SK Telecom lost 0.61 percent, Hyundai Mobis weakened 1.42 percent, Hyundai Motor retreated 1.62 percent, Kia Motors declined 1.54 percent and KEPCO was unchanged.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.

Closer to home, South Korea will provide October figures for imports, exports and trade balance later today. Imports are expected to sink 4.3 percent on year after tumbling 16.5 percent in September. Exports are called higher by an annual 5.5 percent after slipping 4.4 percent in the previous month. The trade deficit is pegged at $2.0 billion following the $3.70 surplus a month earlier.