(RTTNews) – The South Korea stock market headed south again on Tuesday, one day after halting the two-day slide in which it had fallen more than 15 points or 0.5 percent. The KOSPI now sits just beneath the 3,100-point plateau and it’s likely to take further damage again on Wednesday.
The global forecast for the Asian markets is soft amid concerns about the outlook for interest rates and the economic recovery. The European and U.S. markets were down sharply and the Asian bourses are tipped to follow that lead.
The KOSPI finished sharply lower on Tuesday following losses from the technology and industrial stocks, while the financials, chemicals and energy companies offered support.
For the day, the index dropped 35.72 points or 1.14 percent to finish at 3,097.92 after trading between 3,095.72 and 3,134.46. Volume was 881.95 million shares worth 14.38 trillion won. There were 711 decliners and 193 gainers.
Among the actives, Shinhan Financial collected 1.52 percent, while KB Financial soared 3.02 percent, Hana Financial spiked 2.35 percent, Samsung Electronics tumbled 1.80 percent, LG Electronics plummeted 4.33 percent, SK Hynix dropped 0.96 percent, Naver tanked 2.61 percent, LG Chem gained 0.78 percent, Lotte Chemical rallied 2.33 percent, S-Oil skyrocketed 5.02 percent, SK Innovation surged 3.78 percent, POSCO retreated 1.32 percent, SK Telecom dropped 1.10 percent, KEPCO declined 1.26 percent, Hyundai Motor skidded 1.23 percent and Kia Motors plunged 2.44 percent.
The lead from Wall Street is broadly negative as the major averages opened solidly in the red on Tuesday and stayed that way throughout the session.
The Dow plummeted 569.38 points or 1.63 percent to finish at 34,299.99, while the NASDAQ plunged 423.29 points or 2.83 percent to close at 14,546.68 and the S&P 500 tumbled 90.48 points or 2.04 percent to end at 4,352.63.
Technology stocks helped lead the markets lower amid a continued advance by treasury yields. Extending the upward move seen since last week’s announcement from the Federal Reserve, the yield on the benchmark ten-year note reached its highest levels in over three months.
The increase in treasury yields, which move opposite of bond prices, came as the Fed has signaled plans to begin scaling back its asset purchases in the near future.
Also contributing to the continued advance by yields, Federal Reserve Chair Jerome Powell warned members of the Senate Banking Committee about upside risks to inflation during testimony Tuesday morning.
Crude oil futures ended lower Tuesday, snapping a five-day winning streak as a sell-off in stock markets and a stronger dollar weighed on the commodity. West Texas Intermediate Crude oil futures for November ended lower by $0.16 or 0.2 percent at $75.29 a barrel.