The South Korea stock market has climbed higher in three straight sessions, advancing more than 45 points or 1.5 percent along the way. The KOSPI now sits just above the 3,215-point plateau and it may tick higher again on Tuesday.
The global forecast for the Asian markets is mostly positive on optimism for earnings – especially tech shares – although coronavirus concerns in India may cap the upside. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to follow suit.
The KOSPI finished sharply higher on Monday following gains from the financial shares, oil companies and automobile producers, while the technology stocks were mixed.
For the day, the index climbed 31.43 points or 0.99 percent to finish at the daily high of 3,217.53 after trading as low as 3,191.34. Volume was 1.3 billion shares worth 15.4 trillion won. There were 534 gainers and 320 decliners.
Among the actives, Shinhan Financial rallied 2.14 percent, while KB Financial gathered 1.29 percent, Hana Financial collected 0.23 percent, Samsung Electronics climbed 0.85 percent, LG Electronics surged 3.67 percent, SK Hynix sank 0.75 percent, Naver eased 0.13 percent, LG Chem advanced 1.03 percent, Lotte Chemical improved 1.19 percent, S-Oil skyrocketed 8.08 percent, SK Innovation jumped 1.30 percent, POSCO perked 1.97 percent, SK Telecom added 0.64 percent, KEPCO gained 0.62 percent, Hyundai Motor rose 0.23 percent and Kia Motors spiked 1.72 percent.
The lead from Wall Street is mixed to higher as the major averages opened in the green on Monday although the Dow was unable to hold its gains at the end of the day.
The Dow slipped 61.92 points or 0.18 percent to finish at 33,981.57, while the NASDAQ jumped 121.97 points or 0.87 percent to end at 14,138.78 and the S&P 500 rose 7.45 points or 0.18 percent to close at 4,187.62.
Tech stocks led the markets higher amid optimism ahead of the release of quarterly results from a number of big-name companies later this week.
Buying interest was subdued, however, as traders looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday. The Fed is widely expected to maintain its ultra-easy monetary policy, but traders will be paying close attention to any changes to the accompanying statement that may signal a shift in the near future.
In economic news, the Commerce Department said new orders for U.S. manufactured durable goods increased by less than expected in March.
Crude oil prices drifted lower on Monday amid continues worries about the outlook for energy demand due to rising coronavirus cases in India. West Texas Intermediate Crude oil futures for June ended lower by $0.23 or 0.4 percent at $61.91 a barrel.
Closer to home, South Korea will provide an advance estimate for Q1 gross domestic product later this morning, with forecasts suggesting an increase of 1.0 percent on quarter and 1.1 percent on year. That follows the 1.2 percent quarterly increase and the 1.2 percent contraction in the previous three months.
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