South Korea Stock Market Due For Profit Taking

(RTTNews) - The South Korea stock market has moved higher in five straight sessions, gathering more than 60 points or 2.5 percent along the way. The KOSPI now rests just above the 2,460-point plateau although investors figure to cash in on Wednesday.

The global forecast for the Asian markets suggests consolidation, thanks to renewed concerns over the outlook for interest rates. The European and U.S. markets were firmly lower and the Asian bourses are expected to follow suit.

The KOSPI finished barely higher on Tuesday as gains from the oil, chemical and steel companies were tempered by weakness from the technology and automobile companies.

For the day, the index rose 0.73 points or 0.03 percent to finish at 2,463.35. Volume was 441.9 million shares worth 10.6 trillion won. There were 462 gainers and 415 decliners.

Among the actives, Shinhan Financial shed 0.67 percent, while KB Financial strengthened 1.20 percent, Hana Financial collected 0.81 percent, Samsung Electronics retreated 1.30 percent, LG Electronics eased 0.09 percent, SK Hynix dropped 0.89 percent, Naver stumbled 1.63 percent, LG Chem jumped 1.93 percent, Lotte Chemical climbed 1.25 percent, S-Oil advanced 0.96 percent, SK Innovation skyrocketed 5.24 percent, POSCO rallied 1.67 percent, SK Telecom spiked 2.59 percent, KEPCO lost 0.67 percent, Hyundai Mobis sank 0.46 percent, Hyundai Motor slumped 1.35 percent and Kia Motors skidded 1.15 percent.

The lead from Wall Street is broadly negative as the major averages opened flat on Tuesday but quickly turned lower, finishing near daily lows.

The Dow plunged 574.98 points or 1.72 percent to finish at 32,856.46, while the NASDAQ sank 145.41 points or 1.25 percent to end at 11,530.33 and the S&P 500 dropped 62.05 points or 1.53 percent to close at 3,986.37.

The sell-off on Wall Street reflected a negative reaction to Federal Reserve Chair Jerome Powell's highly anticipated semiannual monetary policy testimony before the Senate Banking Committee.

Citing stubbornly elevated inflation and stronger than expected economic data, Powell told lawmakers the "ultimate level of interest rates is likely to be higher than previously anticipated."

Powell also said the Fed would be prepared to reaccelerate the pace of rate hikes and for a longer period if incoming data were to indicate that faster tightening is warranted.

Crude oil prices tumbled Tuesday on renewed uncertainty about energy demand, while a surging greenback also weighed on the commodity. West Texas Intermediate Crude oil futures for April slumped $2.88 or 3.6 percent at $77.58 a barrel.