The Korean stock market slipped after a positive start but rebounded swiftly into positive zone. The benchmark KOSPI index, which opened at 1,348 and dropped down to 1,336 after an initial surge, is currently up 12.16 points or 0.91% at 1,349.
The Asian markets opened on a firm note on positive cues from Wall Street but are currently off their highs now as the mood turned a bit cautious after Japan recorded its first annual trade deficit in nearly three decades.
Technology stock Hynix Semiconductor is up 4.8% on strong buying support. LG Display is trading nearly up 5% and LG Electronics is trading with a gain of nearly 3%.
LG Electronics Inc posted a smaller-than-expected 25 percent fall in first-quarter operating profit on Tuesday and said it expected improving sales of mobile phones and air conditioners to drive a recovery in the quarters ahead. LG, the world's No. 3 mobile phone maker, said its handset margins held up well in the three months ended March, while sales of flatscreen LCD TVs jumped by more than a third from a year ago.
Bank stocks Woori Finance, Korea Exchange Bank and Shinhan Group are up by around a per cent over their last closing prices. Among oil majors, S. Oil is down 1.2%. SK Holdings is trading 1.85% up. Energy stock KEPCO is down nearly a per cent.
Automobile stocks Kia Motor and Ssangyong are up with sharp gains while Hyundai Motor is trading marginally higher. Among shipbuilders, Hyundai Heavy Industries is up marginally, while Samsung Heavy Industries and Daewoo are trading weak.
The Asian markets had ended with big losses on Tuesday after Wall Street tumbled on Monday on renewed concerns over mounting bad loans.
However, on Tuesday, the U.S. markets ended firm with investors picking up stocks after initial hesitancy though corporate results were mixed. Stocks, particularly those from the financial sector, climbed up sharply and ended on a firm note with US Bancorp providing the trigger by announcing better-than-expected first quarter earnings. Encouraging results from Texas Instruments pushed up semiconductor stocks.
Comments from Treasury Secretary Timothy Geithner contributed significantly to Wall Street's positive close yesterday. Geithner assured the Congressional Oversight Panel that there is enough money left in the government's $700 billion financial rescue program to stabilize the financial system and that the 'vast majority' of U.S. banks have enough capital and that the credit markets may be thawing following their deep freeze. The Dow ended stronger by 128 points. The Nasdaq ended 36 points up and the S&P closed up 18 points.
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