South Korea Stock Market May Extend Wednesday’s Losses

The South Korea stock market on Wednesday wrote a finish to the two-day winning streak in which it had collected more than 50 points or 1.6 percent. The KOSPI now sits just beneath the 3,265-point plateau and it may tick lower again on Thursday.

The global forecast for the Asian markets is flat to lower, thanks mainly to sinking crude oil prices. The European markets were barely down and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.

The KOSPI finished modestly lower on Wednesday following losses from the financial shares, technology stocks and industrials.

For the day, the index fell 6.57 points or 0.20 percent to finish at 3,264.81 after trading between 3,250.45 and 3,270.09. Volume was 896 million shares worth 12.8 trillion won. There were 514 decliners and 334 gainers.

Among the actives, Shinhan Financial tanked 2.15 percent, while KB Financial skidded 1.34 percent, Hana Financial retreated 1.37 percent, Samsung Electronics shed 0.38 percent, LG Electronics dropped 1.53 percent, SK Hynix rose 0.41 percent, Naver added 0.68 percent, LG Chem gained 0.48 percent, S-Oil sank 1.45 percent, SK Innovation lost 0.73 percent, POSCO surrendered 1.16 percent, SK Telecom tumbled 1.69 percent, KEPCO dipped 0.20 percent, Kia Motors slid 0.34 percent and Hyundai Motor and Lotte Chemical were unchanged.

The lead from Wall Street offers little clarity as stocks opened higher on Wednesday but then cooled and hugged the unchanged line, eventually finishing mixed and flat.

The Dow added 44.44 points or 0.13 percent to finish at 34,993.23, while the NASDAQ lost 32.70 points or 0.22 percent to end at 14,644.95 and the S&P 500 rose 5.09 points or 0.12 percent to close at 4,374.30.

Stocks moved to the upside early in the session amid a positive reaction to Federal Reserve Chair Jerome Powell’s remarks before the House Financial Services Committee, which suggested the central bank is not likely to begin tightening monetary policy anytime soon.

Later in the day, the Federal Reserve released its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts. The Beige Book noted the U.S. economy strengthened from late May to early July, with the pace of growth described as moderate to robust.

On the earnings front, financial giant Citigroup (C) reported better than expected Q2 earnings, while Delta Air Lines (DAL) reported a narrower than expected Q2 loss on revenues that exceeded estimates. Bank of America (BAC) reported Q2 earnings that beat expectations but on weaker than expected revenues.

Crude oil futures settled lower on Wednesday, weighed down by data showing a drop in gasoline demand. Data showing a drop in China’s first-half crude imports also weighed on oil prices. West Texas Intermediate Crude oil futures for August tumbled $2.12 or 2.8 percent at $73.13 a barrel.

Closer to home, the Bank of Korea will wrap up its monetary policy meeting later this morning and then announce its decision on interest rates. The central bank is widely expected to keep its benchmark lending rate steady at 0.50 percent.