The South Korea stock market on Wednesday snapped the three-day losing streak in which it had stumbled almost 60 points or 2.3 percent. The KOSPI now rests just beneath the 2,660-point plateau and it’s looking at another green light for Thursday’s trade.
The global forecast for the Asian markets is broadly positive on slightly easing geopolitical concerns and more bargain hunting, especially among technology stocks. The European and U.S. markets were solidly higher and the Asian bourses are tipped to follow suit.
The KOSPI finished sharply higher on Wednesday following bargain hunting among the industrials and badly oversold technology shares, while the financials were mixed.
For the day, the index climbed 37.70 points or 1.44 percent to finish at 2,659.23 after trading between 2,630.03 and 2,659.90. Volume was 727 million shares worth 9.2 trillion won. There were 734 gainers and 128 decliners.
Among the actives, KB Financial collected 0.35 percent, while Hana Financial shed 0.53 percent, Samsung Electronics strengthened 1.29 percent, LG Electronics jumped 1.63 percent, SK Hynix soared 3.56 percent, Naver advanced 0.92 percent, Samsung SDI improved 2.26 percent, LG Chem gained 0.68 percent, Lotte Chemical spiked 2.49 percent, S-Oil rallied 2.91 percent, SK Innovation surged 3.92 percent, POSCO and SK Telecom both rose 0.35 percent, KEPCO added 0.61 percent, Hyundai Motor accelerated 3.07 percent, Kia Motors skyrocketed 4.19 percent and Shinhan Financial was unchanged.
The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday and remained firmly in the green throughout the trading day.
The Dow surged 518.76 points or 1.55 percent to finish at 34,063.10, while the NASDAQ soared 487.93 points or 3.77 percent to end at 13,437.55 and the S&P 500 jumped 95.41 points or 2.24 percent to close at 4,357.86.
The rally came after the Fed announced its widely expected decision to raise interest rates for the first time since December of 2018 in an effort to combat inflation at 40-year highs. The Fed raised the target range for the federal funds rate by 25 basis points to 0.25 to 0.5 percent.
The central bank also predicted ongoing rate hikes will be appropriate, with the Fed’s latest projections pointing to an interest rate of 1.9 percent by the end of the year. It also expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
Optimism about a potential diplomatic solution to the ongoing Russian invasion of Ukraine also generated buying interest. Ukrainian President Volodymyr Zelenskyy said during an address to the nation that the positions in the negotiations were beginning to “sound more realistic.”
Crude oil prices dropped Wednesday, extending losses to a third straight session after data showed a surprise surge in U.S. crude inventories, and amid hopes of some progress in Russia-Ukraine peace talks. West Texas Intermediate Crude oil futures for April ended lower by $1.40 or 1.5 percent at $95.04 a barrel.
Market Analysis
KOSPI Tipped To Ride Tech Shares Higher Again On Thursday
2022-03-16 23:00:23
