KOSPI Expected To Add To Its Winnings On Wednesday

The South Korea stock market bounced higher again on Tuesday, one day after snapping the three-day winning streak in which it had spiked more than 130 points or 5.2 percent. The KOSPI now rests just above the 2,745-point plateau and it’s poised to extend its gains on Wednesday.

The global forecast for the Asian markets is positive on continued bargain hunting and optimism over earnings news. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The KOSPI finished barely higher on Tuesday following mixed performances from the technology stocks and industrials, while the financials were soft.

For the day, the index rose 1.41 points or 0.05 percent to finish at 2,746.47 after trading between 2,726.72 and 2,779.85. Volume was 555 million shares worth 11.6 trillion won. There were 544 decliners and 313 gainers.

Among the actives, Shinhan Financial eased 0.13 percent, while KB Financial dropped 0.82 percent, Hana Financial fell 0.22 percent, Samsung Electronics added 0.68 percent, LG Electronics sank 0.80 percent, SK Hynix jumped 1.63 percent, Naver retreated 1.53 percent, LG Chem plunged 3.44 percent, Samsung SDI tanked 2.11 percent, Lotte Chemical spiked 4.19 percent, Korea Shipbuilding accelerated 1.22 percent, S-Oil tumbled 2.09 percent, SK Innovation plummeted 5.74 percent, POSCO shed 0.56 percent, SK Telecom advanced 0.90 percent, KEPCO climbed 1.60 percent, Hyundai Motor skidded 1.07 percent and Kia Motors gained 0.90 percent.

The lead from Wall Street is solid as the major averages shook off early weakness on Tuesday and picked up steam as the session progressed, ending firmly in positive territory.

The Dow spiked 371.65 points or 1.06 percent to finish at 35,462.78, while the NASDAQ jumped 178.79 points or 1.28 percent to end at 14,194.79 and the S&P 500 gained 37.67 points or 0.84 percent to close at 4,521.54.

The strength that emerged on Wall Street came as traders continued to pick up stocks at relatively reduced levels as they digest the latest batch of quarterly earnings news.

Motorcycle maker Harley Davidson (HOG) and education technology company Chegg (CHGG) led the way higher, while drug giant Pfizer fell under pressure.

In economic news, the Commerce Department released a report showing the U.S. trade deficit widened modestly in December.

Crude oil prices settled sharply lower Tuesday, extending losses from the previous session. Oil prices dropped with traders eyeing U.S.-Iran talks, which if successful could flood the market. West Texas Intermediate Crude oil futures for March dropped $1.96 or about 2.2 percent at $89.36 a barrel.