RTTNews - The South Korean stock market on Monday extended its winning streak to five sessions, gathering 100 points or 7.5 percent on its way to a fresh 10-month closing high. The KOSPI is closing on resistance at 1,500 points, and analysts predict that the market could test that level at the opening of trade on Tuesday.
The global forecast for the Asian markets is optimistic as bourses around the world continue to be buoyed by solid corporate earnings news. Commodities are tipped to extend their rebound after suffering through much of last week, while the airlines and properties also are due to rise. The European and U.S. markets all finished firmly in positive territory, and the Asian markets are projected to follow that lead.
The KOSPI finished sharply higher on Monday, powered by strong gains from the technology sector. Financials also ended higher, as did automobile producers.
For the day, the index surged 38.41 points or 2.7 percent to close at 1,478.51 after trading between 1,447.11 and 1,480.49. Volume was 499 million shares worth 6.2 trillion won. There were 665 gainers and 157 decliners, with 58 stocks finishing unchanged.
Among the gainers, Samsung advanced 3 percent, while LG Electronics gained 4.3 percent, Hynix Semiconductor soared 7.1 percent, KB Financial Group jumped 6.2 percent, Hana Financial Group surged 7 percent, Hyundai Motor climbed 3.7 percent, Ssangyong Motor gained 1.4 percent and Daewoo Securities added 5.8 percent.
The lead from Wall Street continues to be broadly positive as stocks posted strong gains on Monday, boosted by promising earnings results and reassuring news from commercial lending giant CIT Group (CIT). The major averages kicked off the week on a positive note, finishing in positive territory by solid margins.
In earnings news, Halliburton Co. (HAL), M&T Bank Corp. (MTB), Hasbro (HAS), Eaton (ETN) and Johnson Controls (JCI) all reported quarterly results that largely exceeded Wall Street expectations, bolstering trader optimism. This morning, some trader concern regarding the bankruptcy of CIT Group was alleviated, as the lending giant reportedly secured $3 billion in financing from some of its largest bondholders.
On the economic front today, the Conference Board released a report showing that its index of leading economic indicators increased by more than expected in June, although both the coincident index and lagging index continued to decline. The report showed that the leading indicators index increased by 0.7 percent in June following an upwardly revised 1.3 percent increase in May. Economists had expected the index to increase by 0.5 percent compared to the 1.2 percent increase originally reported for the previous month.
In other news, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, predicted modest growth starting in the second half of the year, though he said there is not likely to be a strong recovery in the medium term.
The major averages saw further upside heading into the close, finishing near their best levels of the day. The Dow advanced by 104.21 points or 1.2 percent to 8,848.15, the NASDAQ climbed by 22.68 points or 1.2 percent to 1,909.29 and the S&P 500 rose by 10.74 points or 1.1 percent to 951.13.
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