South Korea Shares Due For Downward Correction

(RTTNews) - The South Korea stock market has moved higher in four straight sessions, advancing more than 1,000 points or 12 percent along the way. The KOSPI now sits just above the 8,725-point plateau although investors figure to lock in gains on Wednesday.

The global forecast for the Asian markets is soft, with profit taking on the docket after a few days of solid gains. The European markets were up and the U.S. bourses were mostly lower and the Asian markets are expected to follow the latter lead.

The KOSPI finished sharply higher again on Tuesday following gains from the financial shares and mixed performances from the technology stocks and automobile producers.

For the day, the index rallied 180.62 points or 2.11 percent to finish at 8,726.60 after trading between 8,540.41 and 8,753.82. Volume was 582.36 million shares worth 39.42 trillion won. There were 518 gainers and 359 decliners.

Among the actives, Shinhan Financial climbed 1.04 percent, while KB Financial collected 1.42 percent, Hana Financial vaulted 2.09 percent, Samsung Electronics jumped 1.78 percent, Samsung SDI sank 0.72 percent, LG Electronics tanked 3.90 percent, SK Hynix soared 4.11 percent, Naver tumbled 2.42 percent, LG Chem expanded 1.17 percent, Lotte Chemical dipped 0.12 percent, SK Innovation eased 0.18 percent, POSCO Holdings slumped 1.27 percent, SK Telecom plunged 5.03 percent, KEPCO cratered 3.86 percent, Hyundai Mobis rallied 3.13 percent, Hyundai Motor skidded 1.08 percent and Kia Motors accelerated 1.61 percent.

The lead from Wall Street is mixed to lower as the major averages opened higher on Tuesday but only the Dow was able to hold on to its gains as the markets finished mixed.

The Dow rallied 328.64 points or 0.64 percent to finish at a record 51,999.67, while the NASDAQ dropped 307.60 points or 1.15 percent to end at 26,376.34 and the S&P 500 sank 42.94 points or 0.57 percent to close at 7,511.35.

The pullback by the NASDAQ and the S&P 500 reflected profit taking following recent strength in the markets. Optimism about an end to the monthslong U.S.-Iran contributed to the recent recovery, but some traders cashed in on gains as they wait for the peace deal to be finalized.

The mixed performance on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement later today. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and new Chair Kevin Warsh's post-meeting comments could impact the outlook for rates.

On the inflation front, a report released by the Labor Department showed import prices in the U.S. shot up by much more than expected in the month of May.

Crude oil prices plummeted on Tuesday as transit disruption concerns faded due to the anticipated U.S.-Iran deal. West Texas Intermediate crude for July delivery was down $4.90 or 6.07 percent at $75.85 per barrel.