Auto, battery makers drag South Korean stocks lower on US tariff worries

  • The benchmark KOSPI was down 15.32 points, or 0.60%, at 2,519.02
26 Nov, 2024

SEOUL: Round-up of South Korean financial markets:

South Korea stocks edge higher as chip makers gain after Nvidia earnings

  • South Korean shares fell on Tuesday as auto and battery makers dropped amid US tariff worries. The won weakened, while the benchmark bond yield fell.

  • The benchmark KOSPI was down 15.32 points, or 0.60%, at 2,519.02 as of 0252 GMT.

  • US President-elect Donald Trump on Monday pledged big tariffs on the United States’ three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars.

  • The Transport Equipment Index dropped 1.7%, with Kia, which runs a factory in Mexico, shedding 0.7%.

  • Battery maker LG Energy Solution slid 2.4%, tracking its US customer Tesla’s overnight loss of 4% on uncertainty over electric vehicle (EV) subsidies. Peer Samsung SDI lost 0.5%.

  • Meanwhile, the Bank of Korea on Thursday is expected to keep key policy rate at 3.25% to support the won, according to a Reuters poll, with a majority of economists forecasting at least three rate cuts next year.

  • Among other index heavyweights, e-commerce firms gained, biopharmaceutical manufacturers slipped, while chipmakers were little changed.

  • Of the total 938 traded issues, 461 advanced and 417 declined.

  • Foreigners net sold shares worth 63.9 billion won ($45.65 million).

  • The won was quoted at 1,402.7 per US dollar on the onshore settlement platform, 0.26% lower than its previous close at 1,399.0.

  • In the money and debt markets, December futures on three-year treasury bonds rose 0.07 point to 106.39.

  • The most liquid three-year Korean treasury bond yield fell 3.2 basis points to 2.747%, while the benchmark 10-year yield shed 5.7 basis points to 2.882%.

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