Tech Shares Expected To Boost South Korea Stock Market

The South Korea stock market on Monday snapped the three-day winning streak in which it had jumped almost 100 points or 3.1 percent. The KOSPI now rests just above the 3,005-point plateau although it figures to bounce higher again on Tuesday.

The global forecast for the Asian markets is mixed to higher, with concerns over economic recovery tempered by support from crude oil prices. The European markets were down and the U.S. bourses were mostly higher and the Asian markets figure to follow the latter lead.

The KOSPI finished slightly lower on Monday following mixed performances from the oil, chemical and technology stocks, while the financials provided support.

For the day, the index shed 8.38 points or 0.28 percent to finish at 3,006.68 after trading between 2,990.44 and 3,021.17. Volume was 912 million shares worth 10.5 trillion won. There were 429 decliners and 413 gainers.

Among the actives, Shinhan Financial climbed 1.16 percent, KB Financial rallied 2.38 percent, Hana Financial collected 1.37 percent, Samsung Electronics rose 0.14 percent, SK Hynix skidded 1.32 percent, Naver advanced 0.76 percent, Samsung SDI dropped 0.98 percent, LG Chem skidded 1.08 percent, Lotte Chemical rose 0.62 percent, S-Oil jumped 1.41 percent, SK Innovation retreated 1.25 percent, POSCO tanked 2.44 percent, Daewoo Shipbuilding added 0.84 percent, Korea Shipbuilding dipped 0.21 percent, SK Telecom tumbled 2.15 percent, KEPCO improved 0.88 percent, Hyundai Motor accelerated 0.48 percent, Kia Motors was up 0.12 percent and LG Electronics was unchanged.

The lead from Wall Street is mixed as the major averages opened lower on Monday; the NASDAQ and S&P 500 quickly bounced higher and stayed that way, while the Dow remained in the red and finished slightly lower.

The Dow shed 36.15 points or 0.10 percent to finish at 35,258.61, while the NASDAQ jumped 124.47 points or 0.84 percent to close at 15,021.81 and the S&P rose 15.09 points or 0.34 percent to end at 4,486.46.

The initial weakness on Wall Street reflected profit taking following recent strength in the markets. Worries about the global economic outlook also weighed on the markets after data showed the Chinese economy hit its slowest pace of growth in a year in the third quarter.

An advance by Treasury yields also contributed to the initial drop, although selling pressure waned as yields pulled back well off their highs.

Solid economic data triggered some buying interest after the National Association of Home Builders reported a notable improvement in U.S. homebuilder confidence in October. Retail and software stocks also saw notable strength on the day, while biotechnology, airline and gold stocks moved to the downside.

Crude oil futures settled higher on Monday, extending recent gains amid expectations global energy demand will continue to rise following several countries easing travel restrictions. West Texas Intermediate Crude oil futures for November ended up by $0.16 or 0.2 percent at $82.44 a barrel.