South Korea Shares May Test Resistance At 6,800 Points

(RTTNews) - The South Korea stock market bounced higher again on Tuesday, one day after ending the two-day winning streak in which it had jumped more than 440 points or 6.5 percent. The KOSPI now sits just above the 6,740-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is upbeat on sinking crude oil prices and optimism for an end to the Middle East conflict. The European markets were mixed and the U.S. bourses were up and the Asian markets are expected to follow the latter lead.

The KOSPI finished modestly higher on Tuesday as gains from the automobile producers and financials were offset by weakness from the energy and technology companies.

For the day, the index added 45.78 points or 0.68 percent to finish at 6,742.74.

The lead from Wall Street is positive as the major averages opened higher on Tuesday and remained in the green throughout the trading day.

The Dow climbed 160.24 points or 0.30 percent to finish at 53,577.40, while the NASDAQ rallied 171.11 points or 0.66 percent to close at 26,151.30 and the S&P 500 rose 24.42 points or 0.32 percent to end at 7,677.28.

The early strength on Wall Street partly reflected a positive reaction to an extended nosedive by the price of crude oil, which has continued to give back ground after snapping a six-day winning streak on Monday.

Crude oil prices plummeted Tuesday as investors saw the U.S. administration's move to isolate Iran economically in lieu of military strikes as a beginning sign for easing of gulf tensions. West Texas Intermediate crude for October delivery sank $2.83 or 3.33 percent at $82.18 per barrel.

Traders also seem optimistic that the Trump administration's shift toward economic measures to pressure Iran has reduced the likelihood of the resumption of a full-scale military offensive. The steep drop in crude oil prices also contributed to a continued decrease in treasury yields, which added to the positive sentiment on Wall Street.

However, traders were reluctant to make more significant bets ahead of key events in the coming days, including key U.S. inflation data, Nvidia's (NVDA) quarterly earnings and the Jackson Hole economic symposium.