The South Korea stock market has finished lower in three straight sessions, sliding more than 20 points or 0.9 percent along the way. The KOSPI now rests just beneath the 2,465-point plateau and it’s tipped to open in the red again on Wednesday.
The global forecast for the Asian markets is soft thanks to poor earnings results and a drop in crude oil prices. The European markets were flat and the U.S. bourses were sharply lower – and the Asian markets figure to follow the latter lead.
The KOSPI finished modestly lower on Tuesday as losses from the technology stocks were mitigated by support from the financials and the automobile producers.
For the day, the index slid 9.97 points or 0.40 percent to finish at 2,464.14 after trading between 2,454.44 and 2,479.32. Volume was 519.4 million shares worth 8.1 trillion won. There were 453 gainers and 359 decliners.
Among the actives, Samsung Electronics tumbled 2.77 percent, while LG Electronics skidded 2.39 percent, SK hynix dropped 2.73 percent, Shinhan Financial spiked 1.74 percent, Woori Bank climbed 1.58 percent, POSCO perked 1.14 percent, Hyundai Steel eased 0.18 percent, Hyundai Motor jumped 1.88 percent and Kia Motors added 0.16 percent.
The lead from Wall Street is broadly negative as stocks failed to sustain an initial upward move and moved sharply lower on Tuesday.
The Dow shed 424.56 points or 1.74 percent to 24,024.13, while the NASDAQ lost 121.25 points or 1.70 percent to 7,007.35 and the S&P fell 35.73 points or 1.34 percent to 2,634.56.
The sell-off on Wall Street came as traders reacted to uninspired earnings news from several big-name companies, including 3M Corp. (MMM), Caterpillar (CAT), Alphabet (GOOGL), Travelers (TRV) and Coca-Cola (KO).
Selling pressure was also generated by a continued increase in U.S. treasury yields, with the yield on the benchmark ten-year note rising above 3 percent for the first time since 2014.
In economic news, the Commerce Department noted a bigger than expected increase in new home sales in March. Also, the Conference Board showed an unexpected improvement in consumer confidence in April.
Crude oil futures reversed course Tuesday, unable to extend four-year highs thanks to profit taking and Iran’s resistance to further supply cuts. WTI light sweet oil was down 80 cents at $67.86.