Government Measures May Stabilize KOSPI

(RTTNews) - The South Korea has finished lower in two straight sessions, cratering an incredible 1,100 points or 17 percent in that span. The KOSPI now sits just above the 5,660-point plateau and it has another poor lead, although it may find some artificial stability.

Financial officials held an emergency meeting Wednesday evening in response to the unprecedented two-day crash due to a feared AI bubble. Their measures will be tested in the face of brutal sentiment.

The global forecast for the Asian markets is weak on renewed conflicts in the Middle East, surging crude oil prices and concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets figure to split the difference.

The KOSPI finished sharply lower again on Wednesday, shrugging off a firm open with heavy selling among the technology, automobile and financial sectors.

For the day, the index plummeted 360.42 points or 5.98 percent to finish at 5,663.24 after trading between 5,262.77 and 6,228.52. Volume was 449.29 million shares worth 47.83 trillion won. There were 804 decliners and 91 gainers.

The lead from Wall Street is sharply negative as the major averages opened lower on Wednesday and turned more deeply into the red as the day progressed, ending at session lows.

The late-day sell-off on Wall Street came as treasury yields surged in electronic trading on concerns about the outlook for interest rates even after the Federal Reserve left rates unchanged, although three members voted to increase rates.

Stocks came under pressure early in the day amid a substantial rebound by crude oil prices - which skyrocketed on Wednesday after Iran launched surprise attacks on U.S. bases in Jordan. West Texas Intermediate crude for September delivery was up $5.55 or 7.00 percent at $84.81 per barrel.