South Korea Stock Market May Spin Its Wheels On Thursday

The South Korea stock market on Wednesday ended the three-day winning streak in which it had collected almost 40 points or 1.5 percent. The KOSPI now rests just above the 2,590-point plateau and it’s likely to remain in that neighborhood again on Thursday.

The global forecast for the Asian markets is murky as investors digest Wednesday’s FOMC rate decision. The European markets were down and the U.S. bourses were mixed and little changed and the Asian markets figure to follow the latter lead.

The KOSPI finished sharply lower on Wednesday following losses from the technology stocks and automobile and oil companies, while the financials offered support.

For the day, the index tumbled 44.10 points or 1.67 percent to finish at 2,592.36. Volume was 825.02 million shares worth 36.01 trillion won. There were 871 decliners and 50 gainers.

Among the actives, Shinhan Financial climbed 1.06 percent, while KB Financial surged 4.09 percent, Hana Financial rallied 2.20 percent, Samsung Electronics slid 0.29 percent, Samsung SDI stumbled 1.26 percent, LG Electronics sank 2.27 percent, SK Hynix shed 0.35 percent, Naver retreated 1,64 percent, LG Chem added 0.41 percent, Lotte Chemical slumped 1.77 percent, S-Oil tumbled 1.90 percent, SK Innovation lost 0.49 percent, POSCO plunged 4.26 percent, SK Telecom perked 0.22 percent, KEPCO declined 1.29 percent, Hyundai Mobis plummeted 2.49 percent, Hyundai Motor dropped 0.90 percent and Kia Motors tanked 2.36 percent.

The lead from Wall Street offers little guidance as the major averages opened lower on Wednesday but recovered enough to finish mixed and little changed.

The Dow gained 82.05 points or 0.23 percent to finish at 35,520.12, while the NASDAQ fell 17.27 points or 0.12 percent to close at 14,127.28 and the S&P 500 dipped 0.71 points or 0.02 percent to end at 4,566.75.

The late-day action came after the Fed announced its widely expected decision to resume raising interest following a pause last month, raising the target range for the federal funds rate by 25 basis points from 5.25 to 5.50 percent. With the increase, the midpoint of the target range is the highest since early 2001.

The decision to increase rates came as the Fed noted inflation remains elevated, while U.S. economic activity has been expanding at a moderate pace and job gains have been robust in recent months.

In his post-meeting press conference Fed Chair Jerome Powell said it is possible the central bank could raise rates again in September or hold steady, noting the central bank plans to take a meeting by meeting approach.

Crude oil prices fell Wednesday, weighed down by data showing a smaller than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for September fell $0.85 or 1.1 percent at $78.78 a barrel.