South Korea Shares May Extend Wednesday’s Losses

The South Korea stock market on Wednesday halted the three-day winning streak in which it had spiked almost 90 points or 4 percent. The KOSPI now rests just beneath the 2,240-point plateau and it may open under pressure again on Thursday.

The global forecast for the Asian markets suggests consolidation following recent gains and rising treasury yields. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KOSPI finished modestly lower on Wednesday as losses from the chemical and technology stocks were mitigated by support from the financials and oil companies.

For the day, the index dropped 12.51 points or 0.56 percent to finish at 2,237.44 after trading between 2,234.59 and 2,266.80. Volume was 884 million shares worth 7.7 trillion won. There were 560 decliners and 291 gainers.

Among the actives, Shinhan Financial collected 0.82 percent, while KB Financial climbed 1.16 percent, Hana Financial rose 0.25 percent, Samsung Electronics retreated 1.24 percent, Samsung SDI perked 0.17 percent, LG Electronics surrendered 2.66 percent, SK Hynix tanked 3.03 percent, Naver slumped 2.32 percent, LG Chem tumbled 2.95 percent, Lotte Chemical plunged 3.61 percent, S-Oil soared 2.91 percent, SK Innovation surged 4.47 percent, POSCO spiked 2.00 percent, SK Telecom declined 2.19 percent, KEPCO dipped 0.29 percent, Hyundai Mobis jumped1.72 percent, Kia Motors eased 0.14 percent and Hyundai Motor was unchanged.

The lead from Wall Street is soft as the major averages were unable to hold early gains on Wednesday, slipping into the red in afternoon trade and ending in negative territory.

The Dow shed 99.99 points or 0.33 percent to finish at 30,423.81, while the NASDAQ sank 91.89 points or 0.85 percent to end at 10,680.51 and the S&P 500 lost 24.82 points or 0.67 percent to close at 3,695.16.

Profit taking contributed to the pullback on Wall Street, as traders cashed in on the strong gains on Monday and Tuesday. The major averages ended Tuesday’s trading well off their highs of the session, although the Dow still reached its best closing level in almost a month.

Lingering concerns about higher interest rates and the impact on the global economy also continued to weigh on the markets along with a jump in treasury yields. The yield on the benchmark 10-year note moved sharply higher following a modest pullback on Tuesday, reaching its highest levels in 14 years.

Stocks regained some ground following the release of the Federal Reserve’s Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts. The Beige Book said economic activity in the U.S. has expanded modestly since September, although conditions varied across industries and districts.

Crude oil prices rose sharply Wednesday as data showed declines in U.S. crude and gasoline stockpiles last week. West Texas Intermediate Crude oil futures for November ended higher by $2.73 or 3.3 percent at $85.55 a barrel.

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