(RTTNews) - The South Korean stock market pared losses after opening lower on Tuesday following the negative cues from Wall Street overnight.

At 9.02 P.M. ET, the benchmark Korea Composite Stock Price Index, or KOSPI, was adding 4.17 points, or 0.36%, to 1,160.92.

The South Korean market closed sharply lower on Monday for the third straight session on concerns of a global recession, following the sharp losses on Wall Street Friday. The KOSPI declined 24.21 points, or 2.05%, to close at 1,156.75.

U.S. stocks extended losses on Monday amid concerns about the earnings season and as investors saw little to support a long-term rally.

Oil plunged below $38 per barrel on the New York Mercantile Exchange on Monday and finished at its lowest mark since Christmas Eve. Traders indicated they feel recent production cuts by the Organization of Petroleum Exporting Countries will not be enough to combat rapidly falling demand. Light sweet crude for February delivery ended the day at $37.59, down $3.24 on the session.

The markets have little to digest in terms of economic news on Tuesday.

In the currency market, the U.S. dollar opened Tuesday’s trading at 1,380.0 won, up from Monday’s close of 1,359.0 won.

In the tech sector, market heavyweight Samsung Electronics lost 1.02% and LG Electronics declined 1.55% despite the company’s announcement that it intends to launch a notebook in the U.S. market for the first time within the first half of 2009. Hynix Semiconductor added 1.59% after news that its creditors have agreed to complete the company’s sale by September this year. LG Display LCD gained 3.82%.

Automaker Hyundai Motor added 0.44% and affiliate Kia Motors advanced 1.55%. Ssangyong Motor said that it has suspended production at its sole plant due to a parts shortage. The company had last week applied for court receivership to avoid bankruptcy. Shares of Ssangyong remained unchanged.

Steelmaker Posco fell for the fourth straight session on concerns that global steel demand would not recover any time soon. The company said on Monday that it might have to extend its first-ever output cut through the current quarter of the year as a deepening economic slowdown is reducing demand from automakers and shipbuilders. The company’s stock was down 1.70%.

In the banking sector, Woori Finance gained 2.87%, while KB Financial, the holding firm of Kookmin Bank, remained unchanged. Korea Exchange Bank declined 1.29%.

Oil issue SK added 0.20%, while S-Oil declined 1.01% and energy stock KEPCO lost 1.00%. Among airline stocks, Korean Air Line eased 0.68% and Asiana Air Line rose 2.41%.

Shipbuilders and telecom stocks were also trading mixed. Hyundai Heavy Industries eased 0.24%, while Samsung Heavy Industries gained 1.98% and Daewoo Shipbuilding rose 3.89%. Telecom issue SK Telecom added 0.24% and KT Corp. eased 0.12%.

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Posted in Categories: Releases, Stocks, USA.

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