Bargain Hunting May Boost South Korea Shares

(RTTNews) - The South Korea stock market has finished lower in back-to-back sessions, tumbling more than 500 points or 8 percent in that span. The KOSPI now sits just above the 6,470-point plateau although it's due for recovery on Thursday.

The global forecast for the Asian markets is flat to higher as positive sentiment from easing treasury yields was offset by another jump in crude oil prices. The European markets were mixed and the U.S. bourses were slightly higher and the Asian shares figure to split the difference.

The KOSPI finished sharply lower on Wednesday with damage across the board, especially among the technology stocks, financial shares and automobile producers.

For the day, the index plummeted 398.66 points or 5.80 percent to finish at 6,471.17 after trading between 6,400.81 and 6,614.39. Volume was 302.07 million shares worth 22.94 trillion won. There were 700 decliners and 171 gainers.

The lead from Wall Street is cautiously optimistic as the major averages opened slightly higher on Wednesday and mostly stayed that was throughout the session.

The Dow climbed 119.65 points or 0.22 percent to finish at 53,463.05, while the NASDAQ added 41.38 points or 0.16 percent to close at 26,331.09 and the S&P 500 rose 16.22 points or 0.21 percent to end at 7,707.98.

The strength on Wall Street came amid a significant pullback by bond yields, with the 30-year bond yield pulling back further off its highest levels in nearly two decades. Yields moved sharply lower after the Treasury Department announced upscaled buyback operations for longer-term debt.

Stocks gave back some ground in afternoon trading as the minutes of the Federal Reserve's latest monetary policy revealed many officials believe an increase in interest rates would likely be necessary unless inflation declines.

Crude oil prices soared on Wednesday as the closure of Strait of Hormuz continues, extending supply disruption concerns. West Texas Intermediate crude for September delivery was up $1.18 or 1.39 percent at $86.12 per barrel.