KOSPI May Hand Back Monday's Gains

(RTTNews) - The South Korea stock market on Monday snapped the two-day slide in which it had tumbled almost 350 points or 5.4 percent. The KOSPI now sits just beneath the 6,300-point plateau although it may turn lower again on Tuesday. The global forecast for the Asian markets is weak on continuing concerns over the conflict in the Middle East and the resulting spike in crude oil prices. The European markets were mixed and flat and the U.S. bourses were slightly soft and the Asian markets figure to split the difference.

The KOSPI finished modestly higher on Monday following gains from the automobile producers and a mixed picture from the technology companies.

For the day, the index added 40.89 points or 0.65 percent to finish at 6,299.66. Volume was 629.9 million shares worth 29.09 trillion won. There were 695 gainers and 183 decliners.

The lead from Wall Street is soft as the major averages hugged the line for much of the day before fading midday and ending in the red.

The choppy trading on Wall Street came as traders look ahead to key U.S. inflation data in the coming days.

The Labor Department is scheduled to release reports on consumer and producer inflation on Wednesday and Thursday, respectively. On the heels of last Friday's weak jobs report, the data could impact the outlook for interest rates.

Traders are also keeping an eye on developments in the Middle East, where Iran and Oman are reportedly close on a deal regarding the Strait or Hormuz but Tehran has indicated it is resisting talks with the U.S.

Crude oil prices skyrocketed as a result on Monday as expectations of an early reopening of the Strait of Hormuz began to fade, increasing concerns of military re-escalation. West Texas Intermediate crude for September delivery was up $4.07 or 5.21 percent at $82.25 per barrel