RTTNews - With the overnight weak close on Wall Street and fresh concerns over the state of the U.S. financial sector weighing in significantly and prompting a sell-off in bank, energy and technology stocks, the Korean market drifted down sharply in early trading on Wednesday.
However, with select stocks garnering fairly strong support at lower levels, the market has staged a decent recovery in subsequent trading.
The benchmark index KOSPI, which fell to 1,593 earlier in the day, is currently trading at 1,616, down by around 7 points or 0.44% from its previous close.
Among key bank stocks, Korea Exchange Bank is down by 3.6% and KB Financial is trading lower by 2.8%. Woori Finance and Shinhan Financial are down by 1.7% and 1.5%, respectively.
In the technology space, Samsung Electronics, LG Display LCD and LG Electronics are down by 1% - 1.8%, while Hynix Semiconductor is trading up by a modest 0.7%.
Steel stocks Hyundai Steel and POSCO are trading lower by 1.4% and 2.4% respectively. Oil stocks SK Holdings and S-Oil are also trading weak.
Among shipbuilders, Hyundai Heavy Industries and Samsung Heavy Industries are down by 2% and 1.6%, respectively. Daewoo Shipbuilding is trading lower by 0.8% and STX Pan Ocean is up by 0.5%.
Airlines and telecom stocks are trading mixed. Automobiles, Kia Motor and Hyundai Motor are gaining 1% and 1.8%, respectively, while Ssangyong Motor is up by nearly 15%.
In the currency market, the South Korean won fell 0.8% against the U.S. dollar early this morning with increased volatility in global stock markets prompting investors to cut down positions on riskier assets. The won fell to 1,250.9 in early trading, down from Tuesday's domestic close of 1,240.7.
Among other markets in the Asia-Pacific region, Japan, Australia, Hong Kong and Indonesia are trading sharply lower today. New Zealand and Singapore are also trading weak. Shanghai is up sharply with its benchmark index gaining 1.57%, while Taiwan is trading modestly higher.
On Wall Street, stocks saw substantial weakness on Tuesday, as traders shrugged off some positive economic reports and chose to exit counters on fresh concerns about the health of the U.S. financial sector.
The Dow ended with a big loss of 185.68 points, or 2% at 9,311, the Nasdaq declined by 40.17 points, or 2% to 1,969 and the S&P500 closed down by 22.58 points, or 2.2% at 998.
Major European markets closed notably lower, with the French CAC 40 index and the U.K.'s FTSE 100 sliding by 1.9% and 1.8%, respectively while the German DAX index fell by 2.5%.
Crude oil plunged toward US$68 per barrel as global stocks continued to decline, increasing worries over energy demand. Traders appeared to be looking for major jobs reports and the weekly petroleum inventory data. Light sweet crude for October delivery dropped to US$68.05, down US$1.91 on the session.
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