Renewed Consolidation Called For KOSPI

(RTTNews) - The South Korea stock market bounced higher again on Wednesday, one day after ending the three-day winning streak in which it had rallied more than 430 points or 6.1 percent. The KOSPI now sits just above the 7,050-point plateau although it may head south again on Thursday.

The global forecast for the Asian markets is negative on surging crude oil prices and the resulting inflation concerns. The European and U.S. markets were firmly in the red and the Asian markets are expected to open in similar fashion.

The KOSPI finished sharply higher on Wednesday on gains from the technology stocks and industrials, although the financials and chemicals were soft.

For the day, the index jumped 97.12 points or 1.40 percent to finish at 7,051.64. Volume was 318 million shares worth 22.3 trillion won. There were 463 gainers and 398 decliners.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and remained under water throughout the trading day, ending near session lows.

The Dow dropped 405.41 points or 0.77 percent to finish at 52,380.66, while the NASDAQ shed 168.07 points or 0.64 percent to end at 26,253.34 and the S&P 500 fell 37.16 points or 0.48 percent to close at 7,636.36.

The continued weakness on Wall Street came amid an extended surge by the price of crude oil, with international benchmark brent crude futures topping $100 a barrel for the first time since July.

The sharp increase in crude oil prices has led to renewed concerns about the outlook for inflation ahead of the Federal Reserve's monetary policy meeting next week.

Crude oil prices surged on Wednesday as the U.S. and Iran continued to trade attacks, dashing hopes for the reopening of the Strait of Hormuz and renewing inflation concerns. West Texas Intermediate crude for October delivery was up $2.98 or 3.20 percent at $96.01 per barrel.