(RTTNews) – The South Korea stock market bounced higher again on Monday, one session after ending the six-day winning streak in which it had surged almost 1,350 points or 16 percent. Now at a record closing high, the KOSPI sits just above the 9,050-point plateau although it may head south again on Tuesday.
The global forecast for the Asian markets is mixed to lower amid weakness from technology shares and concerns about the outlook for interest rates. The European and U.S. markets were mixed to lower and the Asian bourses figure to also open to the downside.
The KOSPI finished modestly higher on Monday as gains from the technology stocks were capped by weakness from the financials, chemicals and automobile producers.
For the day, the index gained 62.13 points or 0.69 percent to finish at 9,114.55 after peaking at 9,253.00. Volume was 377.2 million shares worth 41.4 trillion won. There were 739 decliners and 148 gainers.
Among the actives, Shinhan Financial tumbled 3.37 percent, while KB Financial sank 0.82 percent, Hana Financial tanked 3.08 percent, Samsung Electronics dipped 0.14 percent, Samsung SDI crashed 3.96 percent, LG Electronics surged 5.42 percent, SK Hynix soared 5.61 percent, Naver stumbled 3.27 percent, LG Chem cratered 4.44 percent, Lotte Chemical plummeted 6.65 percent, SK Innovation added 0.66 percent, POSCO Holdings retreated 2.81 percent, SK Telecom shed 0.74 percent, KEPCO rose 0.26 percent, Hyundai Mobis surrendered 7.03 percent, Hyundai Motor plunged 5.22 percent and Kia Motors contracted 2.26 percent.
The lead from Wall Street is weak as the major averages opened slightly higher but quickly headed south before finishing mixed.
The Dow climbed 148.01 points or 0.29 percent to finish at 51,712.71, while the NASDAQ tumbled 351.33 points or 1.32 percent to close at 26,166.60 and the S&P 500 sank 27.79 points or 0.37 percent to end at 7,472.79.
The slump by the NASDAQ came amid weakness among technology stocks, with shares of SpaceX (SPCX) plummeting by 16.4 percent. An increase by treasury yields weighed on tech stocks, as the yield on the two-year note reaches its highest levels in over a year.
Concerns about the outlook for interest rates drove yields higher ahead of the release of key inflation data later in the week.
Traders seem worried that an acceleration in the pace of inflation as a result of President Donald Trump’s war with Iran could lead the Federal Reserve to raise interest rates later this year.
Crude oil prices plunged on Monday even though the Iranian military says it has again closed off the Strait of Hormuz, although there are reports of commercial vessels are operating freely in the strait. West Texas Intermediate crude for July delivery was down $1.63 or 2.13 percent at $74.97 per barrel.
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