Oversold KOPSI Called Higher Again On Thursday

(RTTNews) - The South Korea stock market has tracked higher in four straight sessions, gathering more than 640 points or 11.7 percent in that span. The KOSPI now sits just above the 5,870-point plateau and it's got a positive lead again for Thursday's trade.

The global forecast for the Asian markets is upbeat on news of the two-week ceasefire between the United States and Iran - although the Asian markets have already reacted to this news, so the upside may be more measured than the spikes in the European and U.S. markets.

The KOSPI finished with huge gains across the board on Wednesday thanks to easing tensions in the Middle East.

For the day, the index skyrocketed 377.56 points or 6.87 percent to 5,872.34 after trading between 5,774.00 and 5,919.60. Volume was 926 million shares worth 35.6 trillion won. There were 782 gainers and 106 decliners. Among the actives, Shinhan Financial collected 5.80 percent, while KB Financial vaulted 6.34 percent, Hana Financial jumped 5.31 percent, Samsung Electronics rallied 7.12 percent, Samsung SDI advanced 3.29 percent, LG Electronics spiked 8.96 percent, SK Hynix surged 12.77 percent, Naver improved 2.86 percent, LG Chem expanded 6.49 percent, Lotte Chemical climbed 4.09 percent, SK Innovation slumped 1.15 percent, POSCO Holdings gained 4.92 percent, SK Telecom skyrocketed 9.07 percent, KEPCO soared 10.03 percent, Hyundai Mobis added 4.36 percent, Hyundai Motor accelerated 7.40 percent and Kia Motors increased 5.57 percent.

The lead from Wall Street is broadly positive as the major averages opened sharply higher and stayed that way throughout the trading day, ending at session highs.

The Dow surged 1,325.46 points or 2.85 percent to finish at 47,909.92, while the NASDAQ rallied 617.14 points or 2.80 percent to end at 22,634.99 and the S&P 500 jumped 165.96 points or 2.51 percent to close at 6,782.81.

The initial surge on Wall Street came in reaction to news that the U.S., Israel and Iran have agreed to a two-week ceasefire.

President Donald Trump said he has agreed to suspend the bombing and attack of Iran for two weeks subject to Tehran agreeing to the complete and immediate opening of the Strait of Hormuz.

A subsequent statement from Iran's Foreign Minister Abbas Araghchi indicated the Strait of Hormuz will be reopened for a period of two weeks if the attacks against Iran are halted.

Crude oil prices went into a tailspin Wednesday as supply-disruption risks dissipated following a two-week ceasefire agreement between the U.S. and Iran. West Texas Intermediate crude for May delivery was down $18.15 or 16.07 percent at $94.80 per barrel.