The South Korea stock market bounced higher again on Monday, one session after it had ended the five-day winning streak in which it had climbed almost 60 points or 2.6 percent. The KOSPI now rests just above the 2,470-point plateau and it's tipped to open in the green again on Tuesday.
The global forecast for the Asian is cautiously optimistic ahead of today's summit between U.S. President Donald Trump and North Korean leader Kim Jong Un. The European and U.S. markets were slightly higher on the Asian markets are expected to follow suit.
The KOSPI finished modestly higher on Monday as gains from the financials, stocks and steel producers were capped by weakness from the automobile companies.
For the day, the index climbed 18.57 points or 0.76 percent to finish at 2,470.15 after trading between 2,448.00 and 2,470.99. Volume was 414.29 million shares worth 6.81 trillion won. There were 543 gainers and 270 decliners.
Among the actives, SK Telecom surged 4.78 percent, while KEPCO advanced 3.08 percent, POSCO soared 3.33 percent, Hyundai Steel spiked 2.63 percent, Shinhan Financial collected 0.21 percent, KB Financial perked 2.50 percent, Hana Financial gathered 0.98 percent, Korea Electric Power jumped 3.08 percent, Samsung Electronics added 0.50 percent, SK hynix climbed 0.90 percent, Hyundai Motor skidded 1.06 percent and Kia Motors tumbled 1.51 percent.
The lead from Wall Street suggests slim upside as stocks showed a lack of direction Monday before inching higher on Monday as the Dow and the S&P hit their best closing levels in three months.
The Dow inched up 5.78 points or 0.02 percent to 25,322.31, while the NASDAQ rose 14.41 points or 0.19 percent to 7,659.93 and the S&P 500 edged up 2.97 points or 0.11 percent to 2,782.00.
The higher close came as traders looked ahead to the summit between Trump and Kim later today. Reports suggest the U.S. may offer North Korea unique security assurances in exchange for the complete and verifiable denuclearization of the Korean peninsula.
Traders also looked ahead to monetary policy announcements by the Federal Reserve and the European Central Bank. The Fed is expected to raise interest rates by 25 basis points, while the ECB may end its bond purchasing program.
Meanwhile, trade concerns continue to hang over the markets after Trump backed out of a joint G7 communiqué over the weekend. Trump continued to hammer U.S. allies on trade after leaving the G7 summit early to attend the meeting with Kim.
by P2PNews Staff Writer