South Korea Bourse Expected To Rebound On Thursday

The South Korea stock market on Wednesday ended the two-day winning streak in which it had collected almost 45 points or 1.5 percent. The KOSPI now rests just above the 2,975-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat after the Federal Reserve said to scale back stimulus as expected and not worse – although weakness from crude oil may limit the upside. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The KOSPI finished sharply lower on Wednesday following losses from the financial shares, technology stocks and automobile producers.

For the day, the index dropped 37.78 points or 1.25 percent to finish at 2,975.71 after trading between 2,969.01 and 3,020.87. Volume was 649 million shares worth 12.3 trillion won. There were 684 decliners and 187 gainers.

Among the actives, Shinhan Financial dropped 0.92 percent, while KB Financial tanked 2.81 percent, Hana Financial plunged 2.43 percent, Samsung Electronics retreated 1.54 percent, LG Electronics dipped 0.81 percent, SK Hynix tumbled 1.86 percent, Naver surrendered 1.83 percent, Samsung SDI rose 0.14 percent, LG Chem plummeted 5.66 percent, Lotte Chemical shed 0.87 percent, S-Oil lost 2.44 percent, SK Innovation skidded 2.01 percent, Korea Shipbuilding was down 0.97 percent, POSCO advanced 0.84 percent, KEPCO declined 1.53 percent, Hyundai Motor sank 0.71 percent, Kia Motors slid 1.16 percent and SK Telecom was unchanged.

The lead from Wall Street ends up positive as the major averages opened lower on Wednesday and languished in the red before a late rally sent them into the green at fresh record closing highs.

The Dow climbed 104.95 points or 0.29 percent to finish at 36,157.58, while the NASDAQ jumped 161.98 points or 1.04 percent to close at 15,811.58 and the S&P 500 gained 29.92 points or 0.65 percent to end at 4,660.57.

The late-day advance on Wall Street came after the Fed announced its widely expected decision to begin scaling back its asset purchases later this month.

The Fed said it plans to reduce its $120 billion in monthly bond purchases by $15 billion per month, citing the substantial further progress the economy has made toward its goals of maximum employment and price stability.

In economic news, payroll processor ADP said private sector employment in the U.S. increased more than expected in October. Also, the Institute for Supply Management showed growth in U.S. service sector accelerated to a new record high last month.

Crude oil futures settled sharply lower Wednesday after data showed a significant jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for December ended down by $2.74 or 3.3 percent at $81.17 a barrel.