The South Korea stock market finished higher in nine straight sessions, accelerating almost 100 points or 5.1 percent along the way. The KOSPI now rests just above the 2,070-point plateau although it's overdue for consolidation on Thursday.
The global forecast for the Asian markets suggests volatility after the Federal Reserve trimmed its benchmark lending rate by 25 basis points. The European and U.S. markets finally ended mixed and little changed but the Asian bourses probably will at least open lower.
The KOSPI finished modestly higher on Wednesday as gains from the technology stocks were capped by weakness from the financial shares and a mixed picture from the industrials.
For the day, the index gained 8.40 points or 0.41 percent to finish at 2,070.73 after trading between 2,058.52 and 2,075.63. Volume was 597 million shares worth 4.6 trillion won. There were 404 gainers and 395 decliners.
Among the actives, Shinhan Financial skidded 1.29 percent, while KB Financial tumbled 1.93 percent, Hana Financial dropped 0.84 percent, Samsung Electronics jumped 1.71 percent, LG Electronics added 0.76 percent, LG Display plunged 2.38 percent, SK Hynix advanced 1.01 percent, SK Telecom shed 0.42 percent, KEPCO retreated 1.17 percent, Hyundai Motors climbed 1.19 percent, Kia Motors fell 0.34 percent and POSCO and Samsung SDI were unchanged.
The lead from Wall Street suggests a wild ride following the Federal Reserve's monetary policy announcement.
The Dow added 36.28 points or 0.13 percent to 27,147.08, while the NASDAQ fell 8.62 points or 0.11 percent to 8,177.39 and the S&P 500 rose 1.03 points or 0.03 percent to 3,006.73.
The volatility on Wall Street came after the Fed revealed its widely expected decision to cut rates by another 25 basis points, lowering the target range for the federal funds rate to 1.75 to 2 percent. The latest rate cut was again attributed to the implications of global developments for the economic outlook and muted inflation pressures.
The decision to cut rates was widely expected by economists but was not without dissent from members of the Federal Open Market Committee. The Fed's economic projections suggest that the meeting participants are also divided about the outlook for interest rates.
Fed Chairman Jerome Powell said in his post-meeting press conference that the central bank is prepared for a more "extensive sequence of rate cuts" in the face of an economic downturn but noted that is not currently expected.
Crude oil prices drifted lower on Wednesday, extending losses to a second straight session after moving surging Monday amid an escalation in geopolitical tensions after the drone attacks on Saudi Arabia's oil facilities. West Texas Intermediate Crude oil futures for October ended down $1.23 or 2.1 percent at $58.11 a barrel.
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