The South Korea stock market has finished lower in five straight sessions, tumbling more than 80 points or 3.2 percent along the way. The KOSPI now rests just above the 2,610-point plateau and it’s likely to take further damage again on Tuesday.
The global forecast for the Asian markets is soft on concerns over economic growth and the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian bourses are tipped to open in similar fashion.
The KOSPI finished sharply lower on Monday following losses from the technology stocks and industrials, while the oil companies were up and the financials were mixed.
For the day, the index dropped 33.70 points or 1.27 percent to finish at 2,610.81 after trading between 2,606.08 and 2,642.75. Volume was 870.64 million shares worth 9.06 trillion won. There were 816 decliners and 88 gainers.
Among the actives, Shinhan Financial dipped 0.24 percent, while KB Financial skidded 1.17 percent, Hana Financial collected 0.42 percent, Samsung Electronics lost 0.60 percent, Samsung SDI plummeted 4.21 percent, LG Electronics dropped 2.16 percent, LG Energy Solution surrendered 1.87 percent, Naver tanked 2.48 percent, LG Chem tanked 3.08 percent, Lotte Chemical plunged 3.27 percent, S-Oil surged 3.72 percent, SK Innovation advanced 0.99 percent, POSCO stumbled 1.75 percent, SK Telecom eased 0.17 percent, KEPCO declined 1.53 percent, Hyundai Motor shed 0.55 percent, Kia Motors retreated 1.55 percent and SK Hynix was unchanged.
The lead from Wall Street is broadly negative as the major averages opened sharply lower on Monday and the losses only accelerated as the day progressed.
The Dow plunged 653.67 points or 1.99 percent to finish at 32,245.70, while the NASDAQ plummeted 521.41 points or 4.29 percent to close at 11,623.25 and the S&P 500 tumbled 132.10 points or 3.20 percent to end at 3,991.24.
Traders seem worried aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Rising treasury yields also contributed to the selloff.
The extended sell-off on Wall Street also came as traders looked ahead to inflation data later this week. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.
Crude oil prices slumped on Monday, weighed by concerns about outlook for energy demand amid the impact of the Ukraine war and a slowdown in Chinese economic growth. West Texas Intermediate Crude oil futures for June ended down by $6.68 or 6.1 percent at $103.09 a barrel.
Closer to home, South Korea will release March numbers for current account later today; in February, the current account surplus was $6.42 billion.
KOSPI Expected To Give Up Support At 2,600 Points
2022-05-09 23:00:46
