KOSPI May Break Through Resistance At 5,700 Points

(RTTNews) - The South Korea stock market has finished higher in two of three trading days since the end of the two-day slide in which it had given up more than 280 points or 4.6 percent. The KOSPI now sits just above the 5,680-point plateau and it may extend its gains on Thursday.

The global forecast for the Asian markets is positive on plummeting oil prices following the U.S. midterm elections. The European and U.S. markets were sharply higher and the Asian bourses are expected to open in similar fashion.

The KOSPI finished modestly higher on Wednesday following gains from the financials and pharmaceuticals, weakness from the technology stocks and a mixed picture from the automobile producers.

For the day, the index added 35.01 points or 0.62 percent to finish at 5,683.80 after sinking as low as 5,421.72 in early trade. Volume was 258.8 million shares worth 22.5 trillion won. There were 566 gainers and 302 decliners.

The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and stayed firmly in the green throughout the trading day, ending near session highs.

The Dow surged 1,569.40 points or 3.03 percent to finish at 53,356.12, while the NASDAQ jumped 364.50 points or 1.44 percent to close at 25,736.51 and the S&P 500 rallied 119.70 points or 1.58 percent to end at 7,688.62.

The rally on Wall Street was a positive reaction to the Democrats' decisive victory in the midterm elections on Tuesday after they won control of both the House and Senate after flipping several seats in traditionally Republican states.

In U.S. economic news, payroll processor ADP said private sector employment in the U.S. grew by more than expected in October. Also, the Institute for Supply Management said service sector growth saw a modest slowdown last month.

Crude oil prices tumbled on Wednesday, losing the geopolitical risk premium as a comfortable victory for the Democrat party in the U.S. midterm elections eased concerns of renewed U.S.-Iran escalation. West Texas Intermediate crude for December delivery was down $8.39 or 8.73 percent at $87.70 per barrel.

Closer to home, South Korea will provide September numbers for current account later this morning; in August, the current account surplus was $46.11 billion.