(RTTNews) – The South Korea stock market turned emphatically lower again on Thursday, one day after it had ended the two-day slide in which it had tumbled almost 90 points or 3.6 percent. The KOSPI now rests just beneath the 2,275-point plateau although it may rediscover support on Friday.
The global forecast for the Asian markets is cautiously optimistic, with a bounce from technology stocks expected to lead the way higher. 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 with huge losses on Thursday with damage across the board – especially from the financial shares, technology stocks and automobile producers.
For the day, the index plummeted 86.32 points or 3.66 percent to finish at 2,274.22 after trading between 2,270.85 and 2,357.08. Volume was 891 million shares worth 16.9 trillion won. There were 823 decliners and 73 gainers.
Among the actives, Shinhan Financial retreated 3.66 percent, while KB Financial surrendered 4.08 percent, Hana Financial declined 4.30 percent, Samsung Electronics tanked 4.15 percent, LG Electronics eased 0.12 percent, SK Hynix tumbled 4.27 percent, LG Chem sank 2.34 percent, Lotte Chemical dropped 5.85 percent, S-Oil skidded 3.97 percent, SK Innovation lost 5.49 percent, POSCO fell 2.99 percent, SK Telecom shed 1.52 percent, KEPCO plummeted 4.09 percent, Hyundai Motors plunged 5.78 percent and Kia Motors slipped 4.85 percent.
The lead from Wall Street is positive as stocks moved mostly higher on Thursday, shaking off an early soft open to finish in the green.
The Dow added 46.85 points or 0.17 percent to finish at 27,739.73, while the NASDAQ jumped 118.49 points or 1.06 percent to 11,264.95 and the S&P 500 rose 10.66 points or 0.32 percent to close at 3,385.51.
The strength that emerged on Wall Street was largely among technology stocks, including semiconductor giant Intel (INTC), Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), and Netflix (NFLX).
Stocks initially moved lower following a Labor Department report showing an unexpected increase in first-time claims for U.S. unemployment benefits last week.
Selling pressure waned shortly after the start of trading, however, as the negative sentiment was partly offset by news that China and the U.S. have agreed to hold new trade talks in the coming days.
Crude oil prices sputtered on Thursday on concerns over demand recovery due to the resurgence of the coronavirus. West Texas Intermediate (WTI) U.S. crude futures rose 2 cents or 0.04 percent to $42.76 a barrel.
In economic news, the Bank of Korea said this morning that producer prices were up 0.2 percent on month in July, following the 0.5 percent gain in June. On a yearly basis, producer prices sank 0.8 percent after falling 1.0 percent in the previous month. The Domestic Supply Price Index increased 0.6 percent on month in July and sank 2.8 percent on year.
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