The South Korea stock market had finished higher in three straight sessions, gathering more than 55 points or 2.2 percent along the way. The KOSPI now rests just above the 2,700-point plateau and it’s tipped to add to its winnings on Thursday.
The global forecast for the Asian markets is positive, with surging crude oil prices and strength among financials expected to boost the oversold markets. The European and U.S. markets were up sharply and the Asian markets are expected to open in similar fashion.
The KOSPI finished slightly higher on Wednesday as big gains from the oil companies were sapped by damage from the financials, industrials and chemical companies.
For the day, the index rose 4.34 points or 0.16 percent to finish at 2,703.52 after trading between 2,692.24 and 2,716.46. Volume was 519 million shares worth 10.8 trillion won. There were 645 gainers and 228 decliners.
Among the actives, Shinhan Financial tanked 2.18 percent, while KB Financial plunged 4.02 percent, Hana Financial plummeted 4.62 percent, Samsung Electronics shed 0.55 percent, SK Hynix climbed 1.21 percent, Naver fell 0.31 percent, LG Chem tumbled 1.77 percent, Lotte Chemical cratered 6.14 percent, S-Oil surged 6.04 percent, SK Innovation spiked 3.49 percent, POSCO lost 0.53 percent, SK Telecom dipped 0.18 percent, KEPCO eased 0.22 percent, Hyundai Motor surrendered 2.57 percent, Kia Motors slumped 2.30 percent and LG Electronics was unchanged.
The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and accelerated as the session progressed, ending near daily highs.
The Dow surged 596.40 points or 1.79 percent to finish at 33,891.35, while the NASDAQ soared 219.56 points or 1.62 percent to end at 13,752.02 and the S&P 500 jumped 80.28 points or 1.86 percent to close at 4,386.54.
The rally on Wall Street came on surging crude oil prices and a rebound by treasury yields.
Also, Federal Reserve Chair Jerome Powell told the House Financial Services Committee the Fed still believes it will be appropriate to raise interest rates later this month, citing inflation well above 2 percent and a strong labor market. The likely increase in interest rates comes even though Powell acknowledged that the Russia-Ukraine conflict has introduced significant uncertainty for the U.S. economic outlook.
On the U.S. economic front, payroll processor ADP said U.S. private sector employment jumped much more than expected in February.
Crude oil prices climbed higher on Wednesday, extending gains amid concerns about global crude supplies due to the ongoing Russia-Ukraine conflict and data showing a drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for April ended higher by $7.19 or 7 percent at $110.60, the highest settlement since May 2011.
South Korea will release final Q4 figures for gross domestic product this morning; in the third quarter, GDP rose 0.3 percent on quarter and 4.0 percent on year.
Market Analysis
South Korea Stock Market Poised To Extend Winning Streak
2022-03-02 23:00:21
