South Korean Shares Follow Wall Street Lower
The KOSPI index experienced a significant drop of 1.8%, settling at approximately 2,401 points on Friday. This decline came after a nearly 7% increase the day before, marking the index's trajectory towards a third consecutive weekly loss. The downturn mirrored the declines on Wall Street as renewed US-China trade tensions triggered widespread market sell-offs. The United States has implemented a cumulative tariff rate of 145% on Chinese imports, with a 90-day tariff suspension on goods from most other nations, adding clouds of uncertainty to trade negotiations. The decline was widespread across sectors, led by automakers like Hyundai Motor, which fell 3.7%, and its affiliate Kia Corp, which dropped 3%. Semiconductor and battery stocks also saw significant losses, with SK Hynix declining by 3.2% and LG Energy Solutions by 3.6%. In contrast, shipbuilding firms such as Hyundai Heavy Industries and Hanwha Ocean witnessed gains of 4% and 2.3%, respectively, after former President Trump suggested that the US might purchase advanced ships from allied countries. This move would be a pivotal area of collaboration between South Korea and the US amid apprehensions regarding China's significant capabilities.
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