South Korea Shares Due For Profit Taking

(RTTNews) - The South Korea stock market has moved higher in three straight sessions, advancing more than 430 points or 7.8 percent along the way. The KOSPI now sits just above the 5,925-point plateau although investors figure to lock in gains on Thursday.

The global forecast for the Asian markets is negative on pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The KOSPI finished with huge gains on Wednesday, supported by the financial, technology and industrial sectors.

For the day, the index surged 284.55 points or 5.04 percent to finish at 5,925.03 after trading between 5,766.14 and 5,934.35. Volume was 1.1 billion shares worth 26.1 trillion won. There were 614 gainers and 278 decliners.

Among the actives, Shinhan Financial collected 4.17 percent, while KB Financial improved 2.65 percent, Hana Financial jumped 4.19 percent, Samsung Electronics surged 7.53 percent, Samsung SDI vaulted 4.11 percent, LG Electronics strengthened 4.80 percent, SK Hynix soared 8.87 percent, Naver added 1.12 percent, LG Chem expanded 4.07 percent, Lotte Chemical skyrocketed 16.81 percent, SK Innovation climbed 3.07 percent, POSCO Holdings advanced 2.04 percent, SK Telecom increased 1.88 percent, KEPCO spiked 3.63 percent, Hyundai Mobis rallied 4.24 percent, Hyundai Motor accelerated 4.41 percent and Kia Motors gained 4.66 percent.

The lead from Wall Street is weak as the major averages opened lower on Wednesday and moved deeper into the red as the day progressed, ending at session lows.

The Dow tumbled 768.11 points or 1.63 percent to finish at 46,225.15, while the NASDAQ dropped 327.11 points or 1.46 percent to close at 22,152.42 and the S&P 500 sank 91.39 points or 1.36 percent to end at 6,624.70.

The weakness early in the day came following the release of a Labor Department report showing producer prices in the U.S. increased by much more than expected in February.

Following that early pullback, stocks saw further downside in late-day trading following Federal Reserve Chair Jerome Powell's comments after the central bank announced its widely expected decision to leave interest rates unchanged.

Powell said the U.S. is seeing "some progress on inflation" but "not as much as we had hoped." While Fed officials' latest projections predict a quarter point rate cut this year, Powell warned that "you won't see the rate cut" if there isn't further progress on inflation.

Crude oil prices ticked lower on Wednesday after Iraq said it has resumed oil production, bypassing the Strait of Hormuz by going through Turkey. West Texas Intermediate crude for April delivery eased $0.18 or 0.19 percent at $96.39 per barrel.