Seoul Stocks Decline as US Protectionism Concerns Rise
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Synopsis
South Korean stocks fell on Tuesday following President Trump's directive to confront unfair global trade practices. The benchmark Korea Composite Stock Price Index dropped 0.37 percent amid concerns over impending tariffs on Mexico and Canada. Trade Minister Cheong In-kyo is set to discuss these issues with international counterparts at the World Economic Forum in Davos.
Key Takeaways
- South Korean stocks faced a decline due to US trade policy concerns.
- The Korea Composite Stock Price Index fell 0.37 percent.
- Trump announced potential tariffs on Mexico and Canada.
- Trade Minister Cheong In-kyo will engage with global leaders in Davos.
- Chipmakers showed resilience amidst market declines.
Seoul, Jan 21 (NationPress) South Korean equities declined on Tuesday following a directive from the new US President Donald Trump, instructing his administration to tackle global unfair trade practices.
Initially opening about 1 percent higher, the benchmark Korea Composite Stock Price Index experienced a drop of 9.26 points, or 0.37 percent, reaching 2,510.79 by 11:20 a.m., according to Yonhap news agency.
Post-inauguration, Trump announced plans to impose tariffs of up to 25 percent on Mexico and Canada starting in February.
He also promised alterations to electric vehicle policies in his inauguration address.
Subsequently, he signed executive orders to review free trade agreements, potentially impacting the Korea-U.S. free trade agreement.
In Seoul, shares in the battery and chemical sectors faced losses.
Leading battery manufacturer LG Energy Solution saw a decline of 5.4 percent, while POSCO Future M plummeted by 10.33 percent.
Top oil refiner SK Innovation dropped 4.4 percent, and LG Chem fell 5.35 percent.
Conversely, chipmakers performed well, with chip giant SK hynix climbing 1.42 percent and Hanmi Semiconductor, a chip equipment firm, rising 2.22 percent.
The local currency was valued at 1,439.35 won against the dollar at 11:20 a.m., up 11.25 won from the previous session.
Meanwhile, Trade Minister Cheong In-kyo will engage in discussions with his international counterparts regarding trade policies under the second Trump administration during the World Economic Forum in Davos, Switzerland.
Cheong is set to participate in the annual meeting of government and business leaders from Wednesday to Friday (local time), under the theme of Collaboration for the Intelligent Age, to address pressing global issues, as stated by the Ministry of Trade, Industry and Energy.
Over 350 government officials and business leaders are anticipated to attend the five-day event that began on Monday, as reported by the ministry.
With President Trump now in office, the trade minister plans to meet with counterparts from nations sharing similar trade concerns with the United States to explore collaborative strategies, the ministry added.
