More Pain Predicted For South Korea Stock Market

The South Korea stock market on Wednesday ended the two-day winning streak in which it had gathered almost 10 points or 0.3 percent. The KOSPI now sits just beneath the 2,845-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets suggests consolidation, especially among the technology and semiconductor companies. The European and U.S. markets were mostly lower and the Asian bourses also figure to follow suit.

The KOSPI finished modestly lower on Wednesday following losses from the industrials and technology stocks and mixed performances from the financial shares.

For the day, the index lost 22.80 points or 0.80 percent to finish at 2,843.29. Volume was 534.4 million shares worth 13.6 trillion won. There were 460 decliners and 409 gainers.

Among the actives, Shinhan Financial spiked 2.28 percent, while Hana Financial eased 0.16 percent, Samsung Electronics skidded 1.14 percent, Samsung SDI slumped 1.11 percent, LG Electronics was up 0.09 percent, SK Hynix plummeted 5.36 percent, Naver climbed 1.05 percent, LG Chem retreated 1.76 percent, Lotte Chemical and SK Telecom both rose 0.19 percent, S-Oil advanced 0.89 percent, SK Innovation surged 5.65 percent, POSCO stumbled 2.01 percent, KEPCO dipped 0.05 percent, Hyundai Mobis dropped 0.87 percent, Hyundai Motor tumbled 2.19 percent, Kia Motors declined 1.55 percent and KB Financial was unchanged.

The lead from Wall Street is a study in contrasts as the Dow opened higher and stayed that way, hitting a fresh record high – while the NASDAQ and S&P remained mired in the red.

The Dow soared 243.60 points or 0.59 percent to finish at 41,198.08, while the NASDAQ plummeted 512.42 points or 2.77 percent to close at 17.996.92 and the S&P 500 tumbled 78.93 points or 1.39 percent to end at 5,588.27.

Wall Street was led lower by semiconductor stocks, which plummeted on reports that President Joe Biden’s administration is considering tougher trade rules against companies in its chip crackdown on China.

Negative sentiment was also generated after former President Donald Trump suggested Taiwan should pay the U.S. for defense, claiming the country took “about 100 percent” of America’s chip business.

In economic news, the Commerce Department noted a significant rebound by new residential construction and building permits in the U.S. in June. A separate report released by the Federal Reserve showed industrial production in the U.S. increased more than expected last month.

Oil prices rose sharply on Wednesday after data showed an unexpected sharp drop in U.S. crude inventories last week, while a weaker dollar also provided support. West Texas Intermediate Crude oil futures for August rallied $2.09 or 2.6 percent at $82.85 a barrel.

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