The South Korea stock market has finished lower in back-to-back trading days, tumbling almost 90 points or 2.9 percent along the way. The KOSPI now sits just above the 3,160-point plateau and it’s expected to extend its losing streak on Thursday.
The global forecast for the Asian markets suggests consolidation on rising inflation and concerns over the outlook for interest rates. The European markets were up and the U.S. bourses were sharply lower and the Asian markets are tipped to open in the red.
The KOSPI finished sharply lower on Wednesday following losses from the financial shares and technology stocks, while the automobile producers were mixed.
For the day, the index retreated 47.77 points or 1.49 percent to finish at 3,161.66 after trading between 3,138.04 and 3,212.83. Volume was 1.4 billion shares worth 22.2 trillion won. There were 705 decliners and 178 gainers.
Among the actives, Shinhan Financial tanked 4.11 percent, while KB Financial surrendered 2.18 percent, Hana Financial sank 2.35 percent, Samsung Electronics skidded 1.48 percent, LG Electronics was down 1.34 percent, SK Hynix tumbled 2.85 percent, Samsung SDI declined 1.25 percent, Naver retreated 1.72 percent, LG Chem plunged 5.27 percent, Lotte Chemical plummeted 4.33 percent, S-Oil shed 1.43 percent, SK Innovation fell 0.93 percent, POSCO cratered 2.56 percent, SK Telecom dropped 2.97 percent, KEPCO lost 2.45 percent, Hyundai Motor added 0.44 percent and Kia Motors spiked 2.09 percent.
The lead from Wall Street is broadly negative as stocks opened in the red on Wednesday and the losses only accelerated as the day progressed.
The Dow plunged 681.50 points or 1.99 percent to finish at 33,587.66, while the NASDAQ tumbled 357.75 points or 2.67 percent to end at 13,031.68 and the S&P 500 sank 89.06 points or 2.14 percent to close at 4,063.04.
The sell-off on Wall Street came amid concerns about the accelerating pace of inflation after the Labor Department said consumer prices rose much more than expected in April.
The significantly faster price growth raised concerns about the outlook for monetary policy even though the Federal Reserve has repeatedly downplayed the risks of inflation.
Crude oil prices moved higher on Wednesday on optimism about the outlook for energy demand and data showing a drop in crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up by $0.80 or 1.2 percent at $66.08 a barrel.
Market Analysis
Continued Consolidation Predicted For South Korea Shares
2021-05-12 23:00:13
