Win Streak May Continue For South Korea Shares

The South Korea stock market has moved higher in three straight sessions, collecting almost 20 points or 0.8 percent along the way. The KOSPI now rests just beneath the 2,495-point plateau and it’s expected to add to its winnings again on Thursday.

The global forecast for the Asian markets is upbeat on optimism over debt ceiling negotiations in the United States. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished modestly higher on Wednesday following gains from the technology, oil, chemical and automobile companies, while the financials were soft.

For the day, the index gained 14.42 points or 0.58 percent to finish at 2,494.66 after trading between 2,475.02 and 2,498.37. Volume was 555.6 million shares worth 7.07 trillion won. There were 552 gainers and 318 decliners.

Among the actives, Shinhan Financial collected 0.14 percent, while KB Financial dropped 0.91 percent, Hana Financial lost 0.48 percent, Samsung Electronics shed 0.61 percent, LG Electronics improved 1.27 percent, SK Hynix jumped 1.66 percent, Naver soared 2.65 percent, LG Chem rallied 2.01 percent, Lotte Chemical spiked 2.30 percent, S-Oil strengthened 1.39 percent, SK Innovation surged 2.88 percent, POSCO eased 0.13 percent, SK Telecom sank 0.81 percent, KEPCO retreated 1.45 percent, Hyundai Mobis climbed 1.13 percent, Hyundai Motor accelerated 0.99 percent and Kia Motors advanced 0.92 percent.

The lead from Wall Street is solid as the major averages opened higher on Wednesday and accelerated throughout the day, ending near session highs.

The Dow surged 408.63 points or 1.24 percent to finish at 33,420.77, while the NASDAQ rallied 157.51 points or 1.28 percent to end at 12,500.57 and the S&P 500 advanced 48.87 points or 1.19 percent to close at 4,158.77.

The rebound on Wall Street reflected optimism that lawmakers will eventually reach an agreement on raising the U.S. debt ceiling following Tuesday’s meeting between President Joe Biden and top congressional leaders.

Regional banks helped lead the rebound on Wall Street, with shares of Western Alliance (WAL) spiking by 10.2 percent after the company said deposit growth for the current quarter exceeded $2 billion as of May 12.

In economic news, the Commerce Department unexpectedly reported a significant rebound in new residential construction in April, although building permits came in below expectations for the month.

Crude oil prices rose sharply Wednesday on expectations of higher demand and optimism over U.S. debt ceiling negotiations. West Texas Intermediate Crude oil futures for June jumped $1.97 or 2.8 percent at $72.83 a barrel.