Oversold KOSPI Nonetheless Called To Open Lower

The South Korea stock market has finished lower in seven straight sessions, tumbling more than 100 points or 3.9 percent along the way. The KOSPI now rests just above the 2,690-point plateau and it’s looking at another weak lead for Thursday’s trade.

The global forecast for the Asian markets is mixed to lower, with technology stocks expected to take heavy damage amidst concerns over interest rates. The European markets were up and the U.S. bourses were down and the Asian markets figure to split the difference.

The KOSPI finished slightly lower on Wednesday following losses from the financials, gains from the automobile producers and a mixed picture from the technology stocks.

For the day, the index dipped 4.29 points or 0.17 percent to finish at 2,592.27 after trading between 2,579.09 and 2,599.11. Volume was 664.4 million shares worth 8.4 trillion won. There were 502 decliners and 360 gainers.

Among the actives, Shinhan Financial stumbled 1.58 percent, while KB Financial tumbled 1.90 percent, Hana Financial plunged 3.16 percent, LG Electronics surrendered 2.24 percent, Samsung SDI retreated 1.52 percent, SK Hynix gained 0.45 percent, Naver improved 1.09 percent, Contemporary Amperex Technology skyrocketed 8.06 percent, LG Chem surged 3.79 percent, Lotte Chemical climbed 1.06 percent, S-Oil dropped 0.93 percent, SK Innovation fell 0.50 percent, POSCO shed 0.54 percent, SK Telecom advanced 0.85 percent, KEPCO tanked 2.21 percent, Hyundai Motor accelerated 1.39 percent, Kia Motors spiked 2.38 percent and Samsung Electronics was unchanged.

The lead from Wall Street is broadly negative as the major averages shook off early strength on Wednesday and accelerated into the red as the day progressed, finishing well under water.

The Dow tumbled 326.63 points or 1.02 percent to finish at 31,834.11, while the NASDAQ plummeted 373.44 points or 3.18 percent to end at 11,364.24 and the S&P 500 sank 65.87 points or 1.65 percent to close at 3,935.18.

The weakness that emerged on Wall Street came as traders digested a highly anticipated Labor Department report showing the annual rate of inflation slowed less than expected in April.

The data added to concerns the Federal Reserve will raise interest rates more aggressively in an effort to bring inflation down at a faster rate, which analysts fear could lead to a period of stagflation or an outright recession.

Crude oil prices climbed higher on Wednesday, rebounding sharply from recent losses thanks to data showing a significant drop in flows of Russian gas to Europe. West Texas Intermediate Crude oil futures for June ended higher by $5.95 or 6 percent at $105.71 a barrel.