KOSPI May Reverse Monday's Losses

(RTTNews) - The South Korea stock market headed south again on Monday, one session after ending the three-day losing streak in which it had cratered more than 1,170 points or 18.2 percent. The KOSPI now sits just above the 6,250-point plateau although it's likely to bounce higher again on Tuesday.

The global forecast for the Asian markets is upbeat on sinking crude oil prices and optimism for an end to the conflict in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KOSPI finished sharply lower on Monday following losses from the technology stocks and energy companies, while the automobile producers offered support.

For the day, the index plummeted 338 points or 5.12 percent to finish at 6,257.45. Volume was 270.9 million shares worth 26.1 trillion won. There were 454 gainers and 417 decliners.

The lead from Wall Street is solid as the major averages opened higher and continued to accelerate throughout the trading day, ending at session highs.

The Dow rallied 693.38 points or 1.32 percent to finish at 53,178.41, while the NASDAQ surged 540.04 points or 2.13 percent to end at 25,913.90 and the S&P 500 jumped 110.78 points or 1.48 percent to close at 7,600.50.

The rally on Wall Street came as crude oil prices have plummeted amid renewed optimism about an end to the conflict in the Middle East.

Crude oil prices plummeted on Monday, with supply disruption threats diminishing after U.S. President Donald Trump called off a planned attack on Iran. West Texas Intermediate crude for September delivery was down $4.77 5.63 percent at $79.90 per barrel.

Trump later claimed that talks between the U.S. and Iran would begin Monday afternoon, although Tehran has denied there are plans for direct negotiations with the U.S.

In U.S. economic news, the Institute for Supply Management said U.S. manufacturing activity increased more than expected in July.

Closer to home, South Korea will see July data for consumer prices later this morning; in June, inflation was up 0.1 percent on month and 3.2 percent on year.