South Korea Stock Market Due For A Rebound

(RTTNews) - The South Korea has finished lower in two of three trading days since the end of the three-day winning streak in which it had jumped more than 580 points or 8.4 percent. The KOSPI now sits just above the 6,020-point plateau and it's likely to bounce higher again on Wednesday.

The global forecast for the largely oversold Asian markets is cautiously optimistic on hopes for an end to hostilities in the Middle East. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to move higher on Wednesday.

The KOSPI finished with huge losses on Tuesday with damage across the board, although the technology companies were especially savaged.

For the day, the index crashed 732.09 points or 10.84 percent to finish at 6,023.66 after falling as low as 5,830.39. Volume was 324.2 million shares worth 33.69 trillion won. There were 875 decliners and 36 gainers.

The lead from Wall Street is uncertain as the major averages opened mixed on Tuesday and trended slightly higher but still ended on opposite sides of the unchanged line.

The Dow rallied 537.24 points or 1.03 percent to finish at 52,747.32, while the NASDAQ slumped 55.17 points or 0.22 percent to close at 24,876.91 and the S&P 500 rose 15.60 points or 0.21 percent to end at 7,428.78.

The advance by the Dow was fueled by strong quarterly results from the likes of Sherwin-Williams (SHW) and Coca-Cola (KO), which roundly beat expectations and raised guidance.

Meanwhile, weakness among technology stocks weighed on the NASDAQ, with semiconductor and computer hardware stocks turning in some of the worst performances.

Outside of the tech sector, oil service stocks also saw significant weakness amid the extended nosedive by the price of crude oil.

Crude plunged again on Tuesday amid rising optimism over a resolution to the U.S.-Iran conflict, easing supply disruption concerns. West Texas Intermediate crude for September delivery shed $3.61 or 4.37 percent at $79.00 per barrel.