South Korea Shares May See Additional Support On Thursday

(RTTNews) - The South Korea stock market has tracked higher in back-to-back sessions, advancing more than 50 points or 2 percent along the way. The KOSPI now rests just beneath the 2,510-point plateau and it may extend its gains again on Thursday.

The global forecast for the Asian markets is upbeat following a drop in U.S. treasury yields. The European markets were mixed and the U.S bourses were slightly higher and the Asian markets figure to split the difference.

The KOSPI finished sharply higher on Wednesday following gains from the technology stocks and chemical companies, while the financials and industrials were mixed.

For the day, the index improved 27.58 points or 1.11 percent to finish at 2,509.27 after trading between 2,498.74 and 2,514.71. Volume was 429 million shares worth 9.7 trillion won. There were 589 gainers and 300 decliners.

Among the actives, Shinhan Financial shed 0.59 percent, while KB Financial fell 0.33 percent, Hana Financial collected 0.49 percent, Samsung Electronics rose 0.38 percent, Samsung SDI soared 3.41 percent, LG Electronics jumped 1.91 percent, SK Hynix spiked 4.03 percent, Naver surged 4.81 percent, LG Chem strengthened 3.99 percent, Lotte Chemical climbed 2.24 percent, SK Innovation added 0.52 percent, POSCO Holdings rallied 2.33 percent, SK Telecom perked 0.18 percent, KEPCO improved 1.94 percent, Hyundai Mobis sank 0.40 percent, Hyundai Motor accelerated 1.74 percent and Kia Motors gained 1.45 percent.

The lead from Wall Street is positive after the major averages opened lower on Wednesday but turned higher into the green as the day progressed, ending at session highs.

The Dow rallied 317.24 points or 0.71 percent to finish at 44,873.28, while the NASDAQ added 38.31 points or 0.19 percent to close at 19,692.33 and the S&P 500 gained 23.60 points or 0.39 percent to end at 6,061.48.

The rebound on Wall Street came amid a notable move to the downside by treasury yields, with the yield on the benchmark ten-year note slumping to its lowest closing level in well over a month.

Yields tumbled after the Treasury Department said its current auction sizes leave it well positioned to address potential changes to the fiscal outlook. Based on projected borrowing needs, the Treasury anticipates maintaining long-term securities auction sizes for at least the next several quarters.

In economic news, the Institute for Supply Management said service sector growth in the U.S. unexpectedly slowed modestly in January. Also, payroll processor ADP said private sector employment in the U.S. increased more than expected last month.

Oil prices settled sharply lower Wednesday after data showed a sharp jump in U.S. crude inventories last week. Concerns about the outlook for oil demand also weighed on prices. West Texas Intermediate Crude oil futures for March settled at $71.03 a barrel, losing $1.67 or 2.29 percent.