The South Korea stock market headed south again on Wednesday, one session after ending the two-day slide in which it had fallen almost 25 points or 1.1 percent. The KOSPI now rests just above the 2,930-point plateau and it’s likely to take further damage on Thursday.
The global forecast for the Asian markets suggests consolidation on inflation concerns and a drop in crude oil prices. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The KOSPI finished sharply lower on Wednesday following losses from the technology, chemical, oil and industrial sectors.
For the day, the index dropped 32.29 points or 1.09 percent to finish at 2,930.17 after trading between 2,924.36 and 2,958.61.
Among the actives, Hana Financial skidded 1.02 percent, while Samsung Electronics shed 0.43 percent, LG Electronics surrendered 2.85 percent, SK Hynix lost 0.46 percent, Naver lost 0.72 percent, LG Chem plunged 3.90 percent, Lotte Chemical cratered 3.23 percent, S-Oil retreated 2.40 percent, SK Innovation plummeted 3.44 percent, POSCO plunged 3.86 percent, KEPCO dropped 0.85 percent, Hyundai Motor tanked 2.11 percent, Kia Motors tumbled 1.72 percent and Shinhan Financial, KB Financial, SK Telecom and Samsung SDI were unchanged.
The lead from Wall Street is broadly negative as the major averages opened slightly lower on Wednesday but saw the losses accelerate as the day progressed to finish solidly under water.
The Dow tumbled 240.04 points or 0.66 percent to finish at 36,079.94, while the NASDAQ plunged 263.84 points or 1.66 percent to close at 15,622.71 and the S&P 500 sank 38.54 points or 0.82 percent to end at 4,646.71.
Concerns about inflation contributed to the weakness on Wall Street after the Labor Department released a report showing consumer prices increased by more than expected in October, lifting the annual rate of price growth to its highest level in over thirty years.
The acceleration in the rate of consumer price inflation raised concerns about the outlook for interest rates even though the Federal Reserve has signaled it will not be in a hurry to begin raising rates.
Also, a separate report from the Labor Department showed another modest decrease in first-time claims for U.S. unemployment benefits last week.
Crude oil prices declined sharply on Wednesday, snapping a three-day winning streak after data showed an increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for December ended down by $2.81 or 3.3 percent at $81.34 a barrel.
Market Analysis
South Korea Bourse May Test Support At 2,900 Points
2021-11-10 23:00:11
