(RTTNews) - The South Korean stock market was down by less than a point on Monday, but that was enough to extend its losing streak to two sessions - costing it nearly 5 points or 0.25 percent along the way. The KOSPI remained below the 1,610-point plateau, although now investors are looking for a modest recovery at the opening of trade on Tuesday.

The global forecast for the Asian markets is fairly upbeat, although it is less conclusive than usual, since the U.S. markets were closed for Labor Day. Commodities are moving modestly higher, although oil is in a holding pattern ahead of the OPEC meeting later this week. There is some residual positive momentum from gains in China on Monday, while the European bourses were sharply higher - and now the Asian markets are tipped also to move higher.

The KOSPI finished virtually flat on Monday as gains among the technology stocks and automobile producers were offset by weakness among the financials.

For the day, the index eased 0.33 points or 0.02 percent to close at 1,608.57 after trading between 1,601.04 and 1,619.98.

Among the gainers, Kumho Tire rose by the daily limit of 15 percent, while Samsung Electronics added 0.8 percent, Hyundai Motor gained 4.7 percent, LG Chem surged 8.4 percent and Hynix Semiconductor was up 0.7 percent.

Finishing lower, KB Financial Group dropped 2.7 percent, while Shinhan Financial Group shed 0.9 percent and Korea Exchange Bank fell 3.5 percent.

There is no lead from Wall Street, but the European markets rose for the second day on Monday as British confectioner Cadbury led food and beverage stocks higher after rejecting a �10.2 billion offer from Kraft Foods.

The markets also got a boost after Finance Ministers and Central Bank Governors of G-20 countries, in a joint statement at the conclusion of the two-day meeting in London, reiterated that the fiscal and monetary policy will continue to be “expansionary” for some more time to come in an effort to minimize or eliminate the chances of a double-dip recession.

Banking stocks also gained. HSBC, Europe’s largest bank, rose 1 percent, while Barclays, Britain’s third largest bank, surged up 2.2 and BNP Paribas, France’s biggest lender, added 1.2 percent. Deutsche Bank, Germany’s largest bank, gained 1 percent.

The FTSEurofirst 300 index of pan-European blue chips closed 1.40 percent higher at 975.90 points, while the narrower DJ Stoxx 50 index rose 1.04 percent to 2,408.58 points. Around Europe, the U.K.’s FTSE 100 index climbed 1.68 percent to 4,933.18, while France’s CAC 40 index surged 1.50 percent to 3,652.83 and Germany’s DAX index rose 1.47 percent to 5,463.51.

In economic news, Moody’s Investors Service on Monday said it has re-aligned South Korea’s local currency bond ceiling to AA1 from AAA, in order to better reflect the country risk concept. However, the rating agency kept the country’s A2 foreign and local currency government ratings, Aa3 foreign currency bond ceiling, A2 foreign currency bank deposit ceiling, and Aa1 local currency bank deposit ceiling unchanged, with stable outlook.

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Posted in Categories: Eurozone, Releases, Stocks, UK, USA.

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