South Korea Bourse May Extend Wednesday's Gains

(RTTNews) - The South Korea stock market bounced higher again on Wednesday, one day after ending the three-day winning streak in which it had climbed more than 40 points or 1.6 percent. The KOSPI now sits just above the 2,525-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is broadly positive on easing concerns over the U.S. Federal Reserve's independence. The European and U.S. markets were firmly higher and the Asian markets are tipped to follow that lead.

The KOSPI finished sharply higher on Wednesday following gains from the financial shares, technology stocks and automobile producers.

For the day, the index jumped 38.92 points or 1.57 percent to finish at 2,525.56 after trading between 2,507.10 and 2,526.72. Volume was 529.94 million shares worth 7.67 trillion won. There were 627 gainers and 254 decliners.

Among the actives, Shinhan Financial advanced 0.93 percent, while KB Financial jumped 1.92 percent, Hana Financial collected 0.67 percent, Samsung Electronics climbed 1.27 percent, Samsung SDI skyrocketed 6.55 percent, LG Electronics strengthened 2.15 percent, SK Hynix soared 4.14 percent, Naver shed 0.41 percent, LG Chem surged 4.62 percent, Lotte Chemical improved 2.61 percent, SK Innovation gained 3.91 percent, POSCO accelerated 3.17 percent, SK Telecom stumbled 2.04 percent, KEPCO sank 0.59 percent, Hyundai Mobis was up 4.56 percent, Hyundai Motor spiked 2.37 percent and Kia Motors rallied 3.69 percent.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday; they came off the day's highs but still finished solidly in the green.

The Dow soared 419.59 points or 1.07 percent to finish at 39,606.57, while the NASDAQ rallied 407.63 points or 2.50 percent to close at 16,708.05 and the S&P 500 jumped 88.10 points or 1.67 percent to end at 5,375.86.

Stocks surged early after President Donald Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell. Trump's attacks on Powell had led to anxiety on Wall Street about the Fed's independence.

The president also suggested he's willing to take a less confrontational approach to trade talks with China, predicting the current 145 percent tariff on Chinese imports will "come down substantially."

Buying interest waned over the course of the session, however, as traders continue to express concerns about recent volatility in the markets triggered largely by Trump's words.

Crude oil prices moved sharply lower on Wednesday after reports suggested that OPEC may accelerate oil output hikes in June for a second consecutive month. West Texas Intermediate crude for June delivery tumbled $1.52 or 2.4 percent to $62.15 a barrel.

Closer to home, South Korea will see preliminary Q1 numbers for gross domestic product later this morning. GDP is expected to add 0.1 percent on quarter and 0.2 percent on year after expanding 0.1 percent on quarter and 1.2 percent on year in the three months prior.