(RTTNews) – The South Korea stock market bounced higher again on Tuesday, one day after it had ended the two-day winning streak in which it had gathered more than 30 points or 1.2 percent. The KOSPI now rests just above the 2,630-point plateau and it may add to its winnings on Wednesday.
The global forecast for the Asian markets is upbeat on optimism for economic recovery and hopes for a Covid-19 vaccine. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.
The KOSPI finished sharply higher on Tuesday following gains from the financials, industrials and technology stocks.
For the day, the index jumped 42.91 points or 1.66 percent to finish at 2,634.25 after trading between 2,611.67 and 2,638.87. Volume was 1.1 billion shares worth 15.7 trillion won. There were 541 gainers and 294 decliners.
Among the actives, Shinhan Financial jumped 2.95 percent, while KB Financial collected 1.21 percent, Hana Financial increased 2.81 percent, Samsung Electronics climbed 1.65 percent, LG Electronics was up 0.58 percent, SK Hynix spiked 3.08 percent, Samsung SDI rallied 2.63 percent, LG Chem advanced 1.12 percent, Lotte Chemical gained 1.06 percent, S-Oil rose 0.57 percent, SK Innovation surged 5.49 percent, POSCO soared 4.91 percent, SK Telecom fell 0.42 percent, KEPCO added 0.70 percent, Hyundai Motor gathered 1.10 percent and Kia Motors accelerated 3.46 percent.
The lead from Wall Street is firm as stocks opened solidly higher on Tuesday and remained in the green throughout the session, offsetting losses from the previous day.
The Dow added 185.28 points or 0.63 percent to finish at 29,823.92, while the NASDAQ spiked 156.37 points or 1.28 percent to end at 12,355.11 and the S&P 500 gained 40.82 points or 1.13 percent to close at 3,662.45.
Continued optimism about a potential coronavirus vaccine also generated buying interest, with Pfizer (PFE) and BioNTech (BNTX) applying to the European Medicines Agency for conditional marketing authorization of their vaccine.
In testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell called the economic outlook “extraordinarily uncertain” and noted it will depend, in large part, on the success of efforts to keep the coronavirus in check.
In economic news, the Institute for Supply Management noted a slowdown in the pace of growth in U.S. manufacturing activity last month. Also, the Commerce Department showed a bigger than expected increase in construction spending in October.
Crude oil prices drifted lower Tuesday following the decision of OPEC and its allies to delay a discussion on output cuts by a couple of days. West Texas Intermediate Crude oil futures for January ended down by $0.79 or 1.7 percent at $45.55 a barrel.
Closer to home, South Korea will provide November numbers for consumer prices later this morning, with forecasts suggesting an increase of 0.2 percent on month and 0.9 percent on year. That follows the 0.6 percent monthly decline and the 0.1 percent yearly increase in October.