Rebound Tipped For South Korea Stock Market

(RTTNews) - The South Korea stock market on Tuesday ended the two-day winning streak in which it had advanced more than 50 points or 2 percent. The KOSPI now sits just above the 2,520-point plateau although it's expected to see renewed support on Wednesday.

The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KOSPI finished modestly lower on Tuesday as losses from the financial shares were offset by support from the technology and automobile sectors.

For the day, the index slipped 13.98 points or 0.55 percent to finish at 2,520.36 after trading between 2,512.21 and 2,526.62. Volume was 434.77 million shares worth 8.51 trillion won. There were 484 gainers and 389 decliners.

Among the actives, Shinhan Financial plunged 3.72 percent, while KB Financial tanked 2.04 percent, Hana Financial retreated 1.27 percent, Samsung Electronics added 0.69 percent, Samsung SDI gained 0.36 percent, LG Electronics increased 0.32 percent, SK Hynix perked 0.06 percent, Naver rallied 1.24 percent, LG Chem rose 0.16 percent, Lotte Chemical declined 1.48 percent, SK Innovation lost 0.59 percent, POSCO added 0.33 percent, SK Telecom soared 2.64 percent, KEPCO surged 2.74 percent, Hyundai Mobis climbed 1.01 percent, Hyundai Motor accelerated 2.05 percent and Kia Motors was up 0.10 percent.

The lead from Wall Street is positive as the major averages opened mixed on Tuesday but trended higher throughout the day and all finished in the green.

The Dow climbed 123.74 points or 0.28 percent to finish at a record 44,860.31, while the NASDAQ jumped 119.46 points or 0.63 percent to close at 19,174.30 and the S&P 500 improved 34.28 points or 0.57 percent to end at 6,021.63, also a record.

The higher close by the major averages came as the minutes of the Federal Reserve's latest monetary policy meeting revealed officials believe it will be appropriate to "gradually" lower interest rates.

The minutes said officials feel a gradual approach to lowering rates to a more neutral stance will be appropriate if economic data come in "about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment."

Oil prices drifted lower on Tuesday following reports Israel and Hezbollah are closer to reaching a cease-fire agreement within the next few days. West Texas Intermediate Crude oil futures for January closed down $0.17 at $68.77 a barrel.