SEOUL: Round-up of South Korean financial markets:
South Korean shares erase early gains as traders eye Trump’s first day
South Korean shares started the session higher on Tuesday, but cut gains after US President Donald Trump’s tariff comments on the first day of his second term.
The benchmark KOSPI was up 6.85 points, or 0.27%, at 2,526.90 as of 0343 GMT after rising more than 1% in early trade.
Trump said on Monday he was mulling imposing 25% tariffs on imports from Canada and Mexico next month.
South Korea’s acting president Choi Sang-mok said he hoped for bilateral relations with Washington to develop more reciprocally under the Trump administration, citing concerns about how US policies might hit Asia’s fourth-largest economy.
Hyundai and sister automaker Kia cut early gains of as much as 2.2% and 4.3% respectively on Trump’s tariff comments.
Battery makers dropped, with LG Energy Solution losing 5% after Trump revoked the previous Biden administration’s executive order on electric vehicles (EVs).
The shipbuilding sector, on Trump’s radar for cooperation, rallied. HD Hyundai Mipo soared 11%, while Hanwha Ocean jumped 4%.
Of the total 944 traded issues, 383 advanced and 493 declined.
Foreigners net sold shares worth 159.1 billion won ($110.6 million).
The won was quoted at 1,436.4 per US dollar on the onshore settlement platform, 0.25% higher than Monday’s close at 1,440.0.
In money and debt markets, March futures on three-year treasury bonds rose 0.20 point to 106.98.
The most liquid three-year Korean treasury bond yield fell by 6.8 basis points to 2.556%, while the benchmark 10-year yield fell by 5.1 basis points to 2.813%.