(RTTNews) – The South Korean stock market ended lower in three consecutive sessions, losing more than 85 points or 2.8% along the way. KOSPI now rests just below the 3,000 point plateau and it could open again under pressure on Tuesday.
Global forecasts for Asian markets are mixed to lower, with rising bond yields likely to weigh on tech and oil stocks. European markets were up and US stock markets were mixed and Asian markets should follow this latest lead.
KOSPI ended sharply lower on Monday following heavy losses in tech stocks, while financials offered support and oil and auto companies were mixed.
For the day, the index lost 30.15 points or 1.00 percent to end at 2,996.11 after trading between 2,992.64 and 3,055.65. The volume was 1.9 billion shares valued at 15.5 trillion won. There were 551 declining and 302 winning.
Among assets, Shinhan Financial climbed 3.68%, while KB Financial climbed 6.28%, Hana Financial jumped 3.63%, Samsung Electronics fell 0.12%, LG Electronics lost 3.70%, SK Hynix lost 3.21%, Samsung SDI plunged 3.13%, LG Chem slipped 1.55%, Lotte Chemical fell 3.73%, S-Oil jumped 1 , 50%, SK Innovation fell 4.96%, POSCO rose 2.23%, SK Telecom rose 0.20%, KEPCO fell 0.22%, Hyundai Motor fell 1.91 % and Kia Motors climbed 2.10%.
The Wall Street advance suggests a big dichotomy on Monday as the Dow Jones hit a new intraday high as the tech-rich NASDAQ collapsed.
The Dow Jones jumped 306.14 points or 0.97% to close at 31,802.44, while the NASDAQ fell 310.99 points or 2.41% to close at 12,609.16 and the S&P 500 lost 20.59 points or 0.54% to close at 3,821.35.
The mixed performance on Wall Street came in reaction to news that the Senate voted on Saturday across parties to approve a new $ 1.9 trillion coronavirus relief bill. The bill, which includes direct payments of $ 1,400 and an extension of unemployment benefits, is expected to be approved by the House later this week.
Passage of the stimulus bill has helped boost yields on Treasuries, prompting traders to shift away from high-tech stocks and shift to cyclical stocks. The ten-year yield fell back after hitting an intraday high above 1.6%, but still ended the session at its highest closing level in over a year.
On the US economic front, the Commerce Department said wholesale inventories in the United States had jumped in line with January estimates.
Crude oil rocked early support to end sharply lower on Monday as profit taking erased early gains following reports of an attack on Saudi facilities. West Texas Intermediate for April delivery fell $ 104 to close at $ 65.05.
Closer to home, South Korea will provide January figures for the current account later this morning; in December, the current account surplus was $ 11.51 billion.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.