Oversold KOSPI Due For Support On Tuesday

(RTTNews) - The South Korea stock market has tracked lower in three straight sessions, tumbling more than 360 points or 6.7 percent along the way. The KOSPI now sits just beneath the 5,280-point plateau although it may stop the bleeding on Tuesday.

The global forecast for the Asian markets is mixed to higher, with bargain hunting likely offset by oil prices and war concerns. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KOSPI finished sharply lower on Monday following losses from the financial shares, technology stocks and automobile producers.

For the day, the index plunged 161.57 points or 2.97 percent to finish at 5,277.30 after trading between 5,151.22 and 5,297.35. Volume was 721.04 million shares worth 20.66 trillion won. There were 749 decliners and 154 gainers.

Among the actives, Shinhan Financial contracted 3.21 percent, while KB Financial surrendered 4.14 percent, Hana Financial skidded 2.90 percent, Samsung Electronics declined 1.89 percent, Samsung SDI eased 0.23 percent, LG Electronics declined 2.56 percent, SK Hynix tumbled 5.31 percent, Naver cratered 2.59 percent, LG Chem rallied 3.54 percent, Lotte Chemical dipped 0.12 percent, SK Innovation jumped 1.80 percent, SK Telecom slumped 2.00 percent, KEPCO plunged 3.87 percent, Hyundai Mobis crashed 2.57 percent, Hyundai Motor stumbled 5.15 percent, Kia Motors retreated 2.76 percent and POSCO Holdings was unchanged.

The lead from Wall Street offers little clarity as the major averages opened higher on Monday but faded as the day progressed and ended mixed.

The Dow added 49.50 points or 0.11 percent to finish at 45,216.14, while the NASDAQ slumped 153.72 points or 0.73 percent to end at 20,794.64 and the S&P 500 sank 25.13 points or 0.39 percent to close at 6,343.72.

Bargain hunting contributed to the initial strength on Wall Street, as some traders looked to pick up stocks at reduced levels following recent weakness.

Optimistic comments from President Donald Trump about the war in the Middle East also generated some early buying interest - but that optimism was short-lived after Trump threatened Iran with obliteration.

Buying interest waned over the course of the session, however, as the price of crude oil saw further upside amid ongoing concerns about the impact of the Middle East war.

Crude oil prices catapulted on Monday as the gulf region remains enveloped in war tension after the U.S. sends more soldiers to the area as Trump warned Iran to open the Strait of Hormuz. West Texas Intermediate crude for May delivery was up $3.05 or 3.06 percent at $102.69 per barrel.

Closer to home, South Korea will provide February figures for industrial production and retail sales later this morning. Production is expected to rise 1.8 percent on month and 6.0 percent on year after slipping 1.9 percent on month and climbing 7.1 percent on year in January. Sales are seen higher by1.0 percent on month, slowing from 2.3 percent in the previous month.