South Korea Shares May Find Traction On Thursday

The South Korea stock market has finished lower in two straight sessions, slumping more than 30 points or 1.1 percent along the way. The KOSPI now rests just above the 2,640-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets suggests mild upside on optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow suit.

The KOSPI finished modestly lower on Wednesday following losses from the technology, chemical and energy stocks, while the automobile companies were up and the financials were mixed.

For the day, the index shed 7.91 points or 0.30 percent to finish at 2,641.49 after trading between 2,630.16 and 2,649.78. Volume was 364 million shares worth 9.8 trillion won. There were 606 decliners and 282 gainers.

Among the actives, Shinhan Financial surged 3.52 percent, while KB Financial collected 0.43 percent, Hana Financial dropped 0.84 percent, Samsung Electronics skidded 1.09 percent, Samsung SDI lost 0.55 percent, LG Electronics rallied 1.39 percent, SK Hynix retreated 1.75 percent, Naver added 0.58 percent, LG Chem tumbled 2.12 percent, Lotte Chemical tanked 2.43 percent, S-Oil fell 0.27 percent, SK Innovation declined 1.45 percent, POSCO slumped 1.68 percent, SK Telecom perked 0.19 percent, KEPCO advanced 0.82 percent, Hyundai Mobis rose 0.40 percent, Hyundai Motor gained 0.80 percent and Kia Motors accelerated 3.25 percent.

The lead from Wall Street is positive as the major averages opened higher on Wednesday, faded midday but rallied late to finish modestly in the green.

The Dow added 75.86 points or 0.20 percent to finish at 38,661.05, while the NASDAQ advanced 91.96 points or 0.58 percent to close at 16,031.54 and the S&P 500 rose 26.11 points or 0.51 percent to end at 5,104.76.

The rebound on Wall Street reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell.

Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at “some point this year,” although he reiterated officials need “greater confidence” inflation is moving sustainably toward 2 percent.

In economic news, payroll processor ADP said private sector employment in the U.S. increased by slightly less than expected in February.

Crude oil futures settled higher on Wednesday after data showed large declines in gasoline and distillate stockpiles last week. West Texas Intermediate Crude oil futures for April ended higher by $0.98 or 1.25 percent at $79.13 a barrel.

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