South Korea Shares May Extend Losing Streak

(RTTNews) - The South Korea stock market has finished lower in three straight sessions, sinking more than 240 points or 3.5 percent along the way. The KOSPI now sits just beneath the 6,840-point plateau and it may spin its wheels again on Thursday.

The global forecast for the Asian markets is mixed to lower as a rebound in crude oil prices may be tempered by an improved outlook for interest rates. The European and U.S. markets were mostly lower and the Asian bourses are expected to open in similar fashion.

The KOSPI finished modestly lower on Wednesday as losses from the automobile, technology and financial sectors were tempered by support from the semiconductors.

For the day, the index shed 32.77 points or 0.48 percent to finish at 6,838.04. Volume was 264.24 million shares worth 18.81 trillion won. There were 511 decliners and 351 gainers.

The lead from Wall Street is weak as the major averages opened higher but slumped as the day progressed, finally ending mixed.

The Dow dropped 443.87 points or 0.86 percent to finish at 50,906.05, while the NASDAQ added 63.52 points or 0.24 percent to close at 26,861.06 and the S&P 500 sank 19.30 points or 0.25 percent to end at 7,651.54.

The early strength on Wall Street reflected a positive reaction to a closely watched report on consumer price inflation in the U.S., which showed that consumer prices rose less than expected in August.

Traders may have felt the data reduced the chances the central bank will raise interest rates later this month. According to CME Group's FedWatch Tool, the chances the Fed will raise rates by a quarter point have fallen to 34.9 percent from 50.9 percent on Tuesday.

But the markets continued to be weighed by bond prices, which saw the ten-year close higher for the seventh consecutive session to its highest closing level since May 2002.

In economic news, payroll processor ADP said private sector employment in the U.S. jumped by more than expected in the month of September.

Crude oil prices rebounded on Wednesday amid lingering uncertainty that the U.S. and Iran will reach a deal to end their prolonged conflict. West Texas Intermediate crude for November delivery climbed $1.02 or 1.1 percent to $90.40 a barrel.

Closer to home, South Korea will see preliminary September figures for imports, exports and trade balance later this morning. Imports are expected to climb 21.5 percent on year, easing from 22.4 percent in August. Exports are called higher by an annual 61.7 percent, down from 68.7 percent in the previous month. The trade surplus is seen at $38.20 billion, up from $34.79 billion a month earlier.