Renewed Selling Pressure Expected For South Korea Shares

The South Korea stock market bounced higher again on Tuesday, one session after ending the two-day winning streak in which it had collected almost 40 points or 1.2 percent. The KOSPI now rests just above the 3,232-point plateau although it may head south again on Wednesday.

The global forecast for the Asian markets is negative on concerns over the coronavirus and for the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The KOSPI finished slightly higher on Tuesday following gains from the financials, oil companies and automobile producers – while technology stocks were soft and chemical companies were mixed.

For the day, the index added 7.58 points or 0.24 percent to finish at 3,232.53 after trading between 3,230.75 and 3,252.85. Volume was 978 million shares worth 12.1 trillion won. There were 534 gainers and 287 decliners.

Among the actives, Shinhan Financial climbed 1.19 percent, while KB Financial collected 0.58 percent, Hana Financial advanced 0.80 percent, Samsung Electronics fell 0.38 percent, SK Hynix dropped 0.85 percent, LG Chem rallied 2.20 percent, Lotte Chemical sank 0.92 percent, S-Oil jumped 1.76 percent, SK Innovation added 0.39 percent, POSCO spiked 2.97 percent, SK Telecom retreated 1.30 percent, KEPCO lost 0.60 percent, Hyundai Motor rose 0.22 percent, Kia Motors gained 0.58 percent and Naver, LG Electronics and Hyundai Mobis were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Monday and remained in the red throughout the session.

The Dow shed 85.79 points or 0.24 percent to finish at 35,058.51, while the NASDAQ plummeted 180.14 points or 1.21 percent to end at 14,660.58 and the S&P 500 sank 20.84 points or 0.47 percent to close at 4,401.46.

The pullback on Wall Street reflected uncertainty ahead of the Federal Reserve’s monetary policy announcement later today. Traders are likely to pay close attention to the Fed’s statement for any clues the central bank is considering scaling back its asset purchase program.

Negative sentiment may also have been generated in reaction to news that the CDC has recommend that people vaccinated for the coronavirus resume wearing masks indoors in areas of high transmission, particularly the South and West.

In economic news, the Commerce Department said new orders for U.S. manufactured durable goods saw continued growth in June. Also, the Conference Board said consumer confidence in the U.S. saw a slight improvement from an upwardly revised level in July.

Crude oil priced drifted lower on Tuesday after moving around the flat line for much of the day’s session, with traders weighing demand prospects and looking ahead to weekly inventory data. West Texas Intermediate Crude futures for September dipped $0.26 or 0.4 percent at $71.65 a barrel.