The South Korean stock market is about to break a losing streak

(RTTNews) – The South Korean stock market ended lower in two consecutive sessions, losing more than 70 points or 2.8% along the way. KOSPI now sits just above the 2,655 plateau, although it should be supported on Tuesday.

The global forecast for Asian markets is cautiously optimistic, with bargain hunting likely after exaggerated selling a day earlier. European markets were down and US stock markets were up and Asian markets should follow the latter lead.

The KOSPI ended sharply lower on Monday following losses in financial stocks, technology stocks and industrial issues.

For the day, the index fell 47.58 points or 1.76% to end at 2,657.13 after trading between 2,657.04 and 2,680.35. There were 761 refusals and 142 winners.

Among assets, Shinhan Financial fell 0.24%, while KB Financial fell 3.07%, Hana Financial fell 2.67%, Samsung Electronics slipped 1.04%, Samsung SDI lost 3.02%, LG Electronics and SK Telecom both fell 3.25%, SK Hynix fell 2.26%. , Naver fell 3.83%, Lotte Chemical weakened 1.79%, S-Oil fell 1.42%, SK Innovation fell 2.52%, POSCO fell 3.21% , KEPCO fell 1.17%, Hyundai Motor climbed 1.11%, Kia Motors fell 0.25% and LG Chem was unchanged.

Wall Street’s lead ends up being positive as major averages spent the most on Monday in negative territory before a subsequent rally pushed them solidly into the green.

The Dow Jones jumped 238.06 points or 0.70% to end at 34,049.46, while the NASDAQ jumped 165.56 points or 1.29% to end at 13,004.85 and the S&P 500 gained 24.34 points or 0.57% to close at 4,296.12.

Wall Street’s late rebound came as Treasuries retreated as the day progressed. The ten-year yield continued to give ground after ending last Thursday’s trading at its highest closing level since December 2018.

NASDAQ benefited from a rise in shares of Twitter (TWTR), which jumped 5.7% after the social media giant agreed to a deal to buy billionaire Elon Musk valued at around $44 billion.

The soft start is the result of lingering worries about the interest rate outlook ahead of the Federal Reserve’s monetary policy meeting next week, as well as worries about global economic growth amid a surge in cases. of Covid-19 in China.

Crude oil prices fell sharply on Monday as a spike in Covid cases in China raised concerns about energy demand. A strong US dollar amid growing prospects of a series of sharp interest rate hikes by the Federal Reserve also weighed on crude oil prices. West Texas Intermediate crude oil futures for June ended down $3.53 or 3.5% at $98.54 a barrel.

Closer to home, South Korea will release an advance estimate of first quarter GDP later this morning. GDP is expected to rise 0.6% quarter on quarter and 2.8% year on year after gaining 1.2% quarter on quarter and 4.2% year on year in the previous three months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.