South Korea Shares May Take Further Damage On Wednesday

(RTTNews) - The South Korea stock market on Tuesday wrote a finish to the five-day winning streak in which it had surged almost 720 points or 11 percent. The KOSPI now sits just beneath the 6,870-point plateau and it may extend its losses on Wednesday.

The global forecast for the Asian markets is soft due to concerns over inflation and crude oil prices. The European and U.S. markets were down and the Asian markets figure to follow suit.

The KOSPI finished sharply lower on Tuesday following losses from the automobile and steel producers, while the technology companies were mixed.

For the day, the index tumbled 108.11 points or 1.55 percent to finish at 6,869.83. Volume was 399.04 million shares worth 29.64 trillion won. There were 679 decliners and 195 gainers.

The lead from Wall Street is negative as the major averages opened lower on Tuesday and remained in the red throughout the session, ending at session lows.

The Dow shed 116.38 points or 0.22 percent to finish at 53,343.40, while the NASDAQ dropped 355.20 points or 1.33 percent to end at 26,289.71 and the S&P 500 sank 53.30 points or 0.69 percent to close at 7,691.76.

The weakness on Wall Street came amid worries about an increase in bond yields, with the 30-year bond yield reaching its highest levels in nearly two decades before easing. Treasury yields have moved to the upside amid lingering concerns about the outlook for inflation due to the ongoing conflict in the Middle East.

Crude oil prices have extended the surge seen over the two previous sessions after President Donald Trump said there are currently no U.S.-Iran talks taking place or scheduled.

Crude oil prices edged higher on Tuesday as hopes for U.S.-Iran talks over the Strait of Hormuz have faded. West Texas Intermediate crude for September delivery was up $0.39 or 0.46 percent at $84.89 per barrel.

In U.S. economic news, the Federal Reserve said industrial production in the U.S. rose by slightly less than expected in the month of July.