South Korean shares little changed ahead of US trade talks
South Korean shares struggled for momentum on Tuesday as investors refrained from taking big bets ahead of the country's trade negotiations with the United States. The won weakened, while the benchmark bond yield fell.
The benchmark KOSPI was up 5.49 points, or 0.17%, at 3,215.01, as of 0222 GMT.
South Korean Finance Minister Koo Yun-cheol said he would try to derive a mutually beneficial trade agreement with the United States, in comments ahead of his departure to Washington to meet U.S. Treasury Secretary Scott Bessent on Thursday.
'There is a wait-and-see mood ahead of South Korea-U.S. negotiations,' said Han Ji-young, an analyst at Kiwoom Securities.
Among index heavyweights, chipmaker Samsung Electronics fell 0.14%, while peer SK Hynix was flat. Battery maker LG Energy Solution climbed 2.23%.
Hyundai Motor was down 1.14%, while sister automaker Kia Corp was up 0.05%. Steelmaker POSCO Holdings shed 2.94%, while drugmaker Samsung BioLogics rose 1.22%.
Celltrion was down 0.28%, after the pharmaceutical firm said it had become the preferred bidder to acquire a U.S. manufacturing factory from an unnamed global pharmaceutical company, in an attempt to offset the risk of U.S. tariffs.
Of the total 934 traded issues, 398 shares advanced, while 478 declined.
Foreigners were net buyers of shares worth 81.1 billion won ($58.32 million).
The won was quoted at 1,392.3 per dollar on the onshore settlement platform, 0.23% lower than its previous close at 1,389.1.
In money and debt markets, September futures on three-year treasury bonds gained 0.05 point to 107.30.
The most liquid three-year Korean treasury bond yield fell by 1.4 basis points to 2.446%, while the benchmark 10-year yield fell by 4.6 basis points to 2.815%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Trump says US will set 15% tariff on South Korean imports under new deal
WASHINGTON/SEOUL: President Donald Trump said on Wednesday the U.S. will charge a 15% tariff on imports from South Korea as part of a deal that eases, for now, tension with a top-10 trading partner and key Asian ally. The arrangement, announced shortly after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements ahead of a self-imposed August 1 deadline. That is when Trump has promised higher tariffs will kick in on U.S. imports from a range of countries. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, faced a 25% rate. 'I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,' Trump wrote on Truth Social. The negotiations were an early test for South Korean President Lee Jae Myung, who took office in June after a snap election. South Korea to prepare mutually agreeable trade package as US tariff deadline looms He said the deal had eliminated uncertainty in the export environment and set U.S. tariffs lower than or at the same level as major competitors. 'We have crossed a big hurdle,' Lee said in a post on Facebook. Trump said Lee would visit the White House 'within the next two weeks' for his first meeting with the U.S. president. Trump said South Korea had agreed to invest $350 billion in the United States in projects selected by Trump and to purchase $100 billion of liquefied natural gas and other energy products, the U.S. president said. Both steps have been major priorities for Trump, a Republican, in other trade deals. Of the $350 billion investment fund, $150 billion was aimed at a shipbuilding partnership while $200 billion would include funds for chips, nuclear power, batteries, and biologics, Kim Yong-beom, policy chief from the South Korean presidential office, told a briefing. Kim said some existing investment plans by South Korean companies would be part of the fund, and that they had ensured there would be safeguards over how the funds were used. Reuters has not seen the text of the deal or analyzed its terms. It was not immediately clear how the investment deals would be structured, where the financing would come from, over what time frame they would be implemented and to what extent their terms would be binding on the parties involved. Trump said additional South Korean investments would be announced later. Trump also said South Korea would accept American products, including cars, trucks and agriculture into its markets and impose no import duties on them. U.S. Commerce Secretary Howard Lutnick said on X that the South Korean energy purchases would take place 'over the next 3.5 years.' The U.S. tariff rate on South Korean autos would be set at 15% and their semiconductor and pharmaceutical exports would not be treated more harshly than those from other countries, he added. Steel, aluminum, and copper were not covered by the new deal and U.S. tariff rates on those goods would remain unchanged. Despite claims by Trump and U.S. officials that non-tariff barriers on agriculture would be eliminated, Kim said that South Korea's rice and beef markets would not be open. South Korean Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo had been in Washington for talks with senior U.S. officials and were believed to have met with Trump shortly before the deal announcement. Pressure had been mounting on South Korea since Japan clinched a deal to cut Trump's threatened tariffs to 15% earlier this month. Amid the last-minute push by government officials to reach a tariff deal, South Korea's Samsung Electronics inked a $16.5 billion chip deal with Tesla. South Korean battery maker LG Energy Solution also signed a $4.3 billion deal to supply Tesla with energy storage system batteries, a person familiar with the matter told Reuters.
Business Recorder
an hour ago
- Business Recorder
Dollar eyes first monthly gain for the year as Fed in no hurry to ease rates
SINGAPORE: The dollar flirted with a two-month peak on Thursday after Federal Reserve Chair Jerome Powell stuck to his patient approach on rates in a closely watched policy decision and offered little insight on when they could be lowered. The greenback was also on track for its first monthly gain for the year, bolstered by a hawkish Fed and U.S. economic resilience, with uncertainty over tariffs beginning to ease given recent trade deals struck by Washington. Against a basket of currencies, the dollar was last steady at 99.77 , not far from a two-month peak of 99.987 it hit in the previous session. The dollar index was set for a monthly gain of more than 3%. U.S. President Donald Trump's chaotic tariffs and fears of the dollar's demise earlier this year had undermined the currency and given it the worst start to the year since the floating exchange rate period. Those worries have since abated, giving the dollar new life. The latest push higher for the currency came on the back of the Fed's policy decision on Wednesday, after Powell reiterated it was still premature to ease rates. 'We've seen the classic correlation still holding, in the sense that we've seen a hawkish Fed push up front-end yields and the U.S. dollar, equities have struggled, and the credibility of the Fed has also been probably reinforced by the view that the Fed chair is still in command,' said Rodrigo Catril, senior currency strategist at National Australia Bank. 'The dollar is not just consolidating, but it's actually getting a little bit of upward momentum … The broader picture as well is that all these tariffs, there's at least an initial impression that the U.S. is the one that's got the upper hand.' The euro was last 0.25% higher at $1.1433, having slid to a seven-week low in the previous session. It was on track to lose 3% for the month. Sterling languished near a 2-1/2-month low and last bought at $1.3248. It was similarly headed for a 3.5% monthly decline. Traders have scaled back expectations for Fed cuts this year following Powell's comments, now pricing in about 35 basis points of easing by December. Markets have also been faced with a blitz of tariff announcements ahead of an August 1 deadline for countries to secure trade deals or face steep levies. South Korea became one of the latest nations to reach an agreement with the U.S., after Trump on Wednesday said Washington will charge a 15% tariff on imports from the key Asian ally. The South Korean won strengthened on the news, rising 0.3% to 1,389.20 per dollar. Trump on Wednesday also slapped a 50% tariff on most Brazilian goods and said the United States is still negotiating with India on trade. BOJ meet Key for investors in Asia on Thursday will be the Bank of Japan's policy decision, where expectations are for the central bank to stand pat on rates. Focus will be on whether Governor Kazuo Ueda offers any hints of another rate hike this year, as the BOJ weighs lingering tariff-induced risks to growth and mounting inflationary pressure from higher food costs. Euro hovers near one-month lows after trade deal, focus switches to Fed The yen wobbled near a four-month low at 149.29 ahead of the decision, headed for a monthly loss of 3.5%. 'In the near term, the balance of risk is gradually shifting toward a more hawkish path - especially if inflation expectations begin to firm or household demand improves meaningfully,' said Howe Chung Wan, head of Asian fixed income at Principal Asset Management. 'But for now, the central bank's stance remains one of seeking more flexibility, prioritising stability over any premature tightening.' In other currencies, the Australian dollar edged up 0.13% to $0.6443 after sliding more than 1% on Wednesday. It was headed for a monthly drop of 2%. The New Zealand dollar rose 0.2% to $0.5906, having also lost more than 1% overnight. It was set to lose roughly 3% for the month.
Business Recorder
an hour ago
- Business Recorder
Gold rebounds from 1-month low on renewed trade uncertainty
Gold prices rebounded on Thursday from a one-month low hit in the previous session, as trade uncertainty stemming from fresh U.S. tariff announcements lifted bullion's appeal, even as expectations of a U.S. rate cut in September eased. Spot gold was up 0.5% at $3,292.24 per ounce, as of 0230 GMT. Bullion hit its lowest level since June 30 at $3,267.79 on Wednesday. U.S. gold futures fell 0.2% to $3,287. 'Gold at sub $3,300 levels has attracted buying interest from traders as a value play, particularly with the prevailing economic uncertainty, which goes hand in hand with Trump's secondary tariff threats,' KCM Trade Chief Market Analyst Tim Waterer said. U.S. President Donald Trump on Wednesday issued a blitz of tariff announcements, ranging from changes to previously threatened levies on imports of copper and on goods from Brazil to ending an exemption from tariffs for small-value shipments from overseas. Trump announced a deal with South Korea involving a 15% U.S. tariff on imports from the country, while confirming ongoing negotiations with India after declaring a 25% tariff on Indian goods effective Friday. He also expressed optimism about trade talks with China, stating he expects a fair deal to be reached. Meanwhile, the U.S. Federal Reserve held interest rates steady on Wednesday, while Chair Jerome Powell's comments dampened expectations of rate cuts in September. Gold, often considered a safe-haven asset during economic uncertainties, tends to perform well in a low-interest-rate environment. 'Support around the $3,250 region is shaping as a key level to potentially protect against a move of more significance to the downside. But any breach could open the door lower to $3,200,' Waterer said. The U.S. core PCE index data will be in focus later in the day, and is expected to rise 0.3% month-on-month and 2.7% year-on-year, per a Reuters poll. Spot silver was down 0.3% at $37 per ounce, platinum rose 0.6% to $1,320.98, and palladium gained 2.5% to $1,234.77.
