Additional Support Expected For South Korea Stock Market

The South Korea stock market has finished higher in two straight sessions, advancing more than 55 points or 2.1 percent along the way. The KOSPI now rests just above the 2,645-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is broadly positive, with support expected from the financial, oil and telecom stocks. The European and U.S. markets were sharply higher and the Asian bourses figure to open in similar fashion.

The KOSPI finished modestly higher on Monday as gains from the technology and automobile stocks were capped by weakness from the oil companies and a mixed picture from the financial sector.

For the day, the index added 8.09 points or 0.31 percent to finish at 2,647.38 after trading between 2,634.29 and 2,653.87. Volume was 631.1 million shares worth 7.7 trillion won. There were 464 decliners and 364 gainers.

Among the actives, Shinhan Financial dipped 0.24 percent, while KB Financial collected 0.87 percent, Hana Financial climbed 0.96 percent, Samsung Electronics eased 0.15 percent, Samsung SDI rallied 0.99 percent, LG Electronics gained 0.48 percent, SK Hynix increased 0.44 percent, Naver strengthened 0.91 percent, LG Chem lost 0.37 percent, S-Oil sank 0.94 percent, SK Innovation dropped 0.95 percent, POSCO perked 0.34 percent, SK Telecom retreated 1.55 percent, KEPCO slid 0.22 percent, Hyundai Motor advanced 0.80 percent, Kia Motors added 0.36 percent and Lotte Chemical was unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and largely accelerated as the day progressed, ending solidly in the green.

The Dow surged 618.34 points or 1.98 percent to finish at 31,880.24, while the NASDAQ soared 180.66 points or 1.59 percent to end at 11,535.27 and the S&P 500 jumped 72.39 points or 1.86 percent to close at 3,973.75.

The strength on Wall Street came as traders continued to pick up stocks at reduced levels, extending the recovery seen late in the trading session last Friday.

Buying interest was also generated in reaction to news the financial hub of Shanghai has lifted some of its COVID-19 restrictions and U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods.

Crude oil futures pared early gains and settled flat on Monday. Oil prices climbed higher earlier in the day amid hopes of increased demand from China, while a weaker dollar also offered support. But prices came off higher levels as the day progressed and eventually settled little changed.

West Texas Intermediate crude oil futures for July ended at $110.29 a barrel, up a penny from Friday’s close of $110.28 a barrel. The contract rose to a high of $111.96 earlier in the day.