Seoul shares open lower amid tariff negotiations
The benchmark Korea Composite Stock Price Index fell 12.34 points, or 0.39 percent, to 3,189.69 in the first 15 minutes of trading.
Trump has notified key US trading partners of new tariff rates set to take effect Aug. 1 unless they offer improved terms in ongoing negotiations.
Overnight, the Dow Jones Industrial Average rose 0.2 percent to 44,459.65, while the tech-savvy Nasdaq composite climbed 0.27 percent to 20,640.33.
In Seoul, large-cap stocks were mixed.
Top carmaker Hyundai Motor fell 1.6 percent, leading shipbuilder HD Hyundai declined 0.43 percent, and leading steelmaker POSCO Holdings shed 0.93 percent.
Chipmaker SK hynix dropped 3 percent, LG Chem lost 0.73 percent, and No. 2 battery maker Samsung SDI declined 0.77 percent.
Among gainers, market bellwether Samsung Electronics rose 0.64 percent, and leading battery maker LG Energy Solution climbed 0.6 percent.
State-run utility Korea Electric Power Corp. jumped 4.06 percent, and top wireless carrier SK Telecom edged up 0.09 percent.
The local currency was trading at 1,384.8 won against the US dollar at 9:15 a.m., down 3.6 won from the previous session. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
6 hours ago
- Korea Herald
Seoul shares up for 2nd day on tech gains despite tariff concerns
Seoul shares closed higher Tuesday, tracking overnight gains on Wall Street and boosted by technology stocks in the face of US President Donald Trump's latest tariff threats. The Korean won rose slightly against the US dollar. The benchmark Korea Composite Stock Price Index added 13.25 points, or 0.41 percent, to finish at 3,215.28. Trade volume was moderate at 415.06 million shares worth 11.94 trillion won ($8.6 billion). Decliners outnumbered gainers 510 to 364. Foreigners bought a net 212.29 billion won worth of shares, while institutions and individuals sold 20.8 billion won and 311.19 won stocks, respectively. Trump has notified key US trading partners of new tariff rates set to take effect Aug. 1 unless they offer improved terms in ongoing trade negotiations. "Trump has already sent a letter to South Korea notifying plans to impose 25 percent tariffs on South Korean products starting Aug. 1. The market had already priced in the news, causing no major jitters," Lee Kyoung-min, an analyst at Daishin Securities Co., said. Large-cap stocks were mixed. Market bellwether Samsung Electronics rose 1.92 percent to 63,700 won, and defense industry firm Hanwha Aerospace jumped 5.08 percent to 848,000 won. Leading shipbuilder HD Hyundai climbed 0.51 percent to 139,000 won, and leading shipping firm HMM gained 1.76 percent to 25,950 won. Among decliners, top carmaker Hyundai Motor fell 2.76 percent to 211,000 won, and leading steelmaker POSCO Holdings declined 0.16 percent to 321,000 won. The local currency was quoted at 1,380.20 won against the greenback at 3:30 p.m., up 1 won from the previous session. (Yonhap)
Korea Herald
7 hours ago
- Korea Herald
Korea may ease age ban on US beef as tariff deadline nears
South Korea may lift its ban on US beef from cattle over 30 months old, using the move as a potential bargaining chip to defuse looming "reciprocal" tariffs from Washington, according to sources on Tuesday. Amid stalled trade talks with the US over 25 percent tariffs set to take effect Aug. 1, Korea appears increasingly willing to relent on the non-tariff barrier. 'We're under heavy pressure to scrap the age limit on US beef, and it's becoming harder to hold the line,' a government official said, speaking on condition of anonymity. Last week, US President Donald Trump sent a tariff-focused letter to Korea, addressed to President Lee Jae Myung, calling the duties necessary 'to correct the many years of Korea's Tariff, and Non-Tariff, Policies and Trade Barriers,' and pressing for meaningful progress on trade grievances. The beef age rule is among key non-tariff barriers the US has pushed to eliminate, alongside restrictions on rice imports and high-resolution mapping data exports. Washington has characterized the restriction as an outdated trade barrier that places unnecessary costs and burdens on American exporters. Korea and the US agreed to limit imports in 2008, only allowing beef from cattle under 30 months old, in an effort to ease public fears over bovine spongiform encephalopathy, or mad cow disease. Trade Minister Yeo Han-koo, who traveled to Washington on July 5 for six days of tariff talks, signaled that agricultural concessions could be on the table, saying Korea had entered 'a period of decisions and strategic choices.' 'There are areas we must protect,' Yeo said at a press conference Monday, 'but also areas where we can be flexible.' He emphasized that agricultural issues require strategic judgment, adding, 'We must protect sensitive sectors, but also take into account the broader framework of the negotiations.' Even so, US beef remains a fraught issue, with domestic farmers warning of market disruption. The Hanwoo Association, a nonprofit representing Korea's beef industry, lashed out at the government over its potential easing of the ban, calling it a betrayal of local cattle farmers. 'While other industries have grown on the back of sacrifices from the agricultural sector, farming and livestock have continued to decline," the association said in a statement Tuesday. 'Among them, the hanwoo industry has suffered the most, but what has the government done so far?' The group noted that Korea imported 221,629 tons of US beef last year, nearly half of the country's total beef imports of 461,027 tons. 'With tariffs set to fall to zero next year, American beef will become even more price-competitive and capture a larger share of the market," they argued.
Korea Herald
8 hours ago
- Korea Herald
China's economy grows 5.2% on trade war truce
BEIJING (AFP) — China's economy expanded more than five percent in the second quarter, official data showed Tuesday, buoyed by strong exports but analysts warned that more was work was needed to address sluggish consumer demand. The figures offer a rare bit of good news for the country's leadership as it fights a multi-front battle to kickstart growth -- a challenge made all the more difficult by Donald Trump's tariff war. But the knock-on effects of the trade turmoil abroad and persistent sluggish consumption mean the economy could slump in the second half of year, analysts warned. The US president has imposed tolls on China and most other major trading partners since returning to office in January, threatening Beijing's exports just as it becomes more reliant on them to stimulate economic activity. The two superpowers have sought to de-escalate their row after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty. On Tuesday, Beijing's National Bureau of Statistics said the Chinese economy grew 5.2 percent in April-June, matching a prediction by an Agence France-Presse survey of analysts and topping an official growth goal for the year set by the government. But it marked a slowdown from the 5.4 percent seen in the first quarter, which was boosted by exporters rushing to shift goods ahead of swingeing US tariffs kicking in. "The national economy withstood pressure and made steady improvement despite challenges," NBS deputy director Sheng Laiyun told a news conference. "Production and demand grew steadily, employment was generally stable, household income continued to increase, new growth drivers witnessed robust development, and high-quality development made new strides," he said. Markets were mixed in response -- after a strong start to the day, Hong Kong pared an early rally while Shanghai dipped into negative territory. Elsewhere, Tokyo, Sydney, Singapore and Taipei, but Seoul, Wellington and Manila retreated. "The figures probably still overstate the strength of growth," Zichun Huang, China Economist at Capital Economics, said in a note. "With exports set to slow and the tailwind from fiscal support on course to fade, growth is likely to slow further during the second half of this year," Huang added. Retail sales rose 4.8 percent on-year, below a forecast in a Bloomberg survey of economists, suggesting efforts to kickstart consumption have fallen flat. The weak readings come even as Beijing tries to shift towards a growth model propelled more by domestic demand than the traditional key drivers of infrastructure investment, manufacturing and exports. Factory output meanwhile gained 6.8 percent, higher than the estimate -- reflecting continued high demand for Chinese exports that has boosted growth. But analysts warn that strong exports could be driving deflationary pressures and further dampening already sluggish consumer demand. "Recent efforts to boost spending, such as the broadening of the consumer goods trade-in scheme earlier this year, did temporarily lift retail sales," said Sarah Tan, an economist at Moody's Analytics. "However, this support proved unsustainable, with funding reportedly drying up in several provinces. The scheme's limitations highlight the need for policymakers to address the deeper structural challenges behind consumer caution." Data last week showed consumer prices edged up in June, barely snapping a four-month deflationary dip, but factory gate prices dropped at their fastest clip in nearly two years. "The economy posted a solid first half, supported by resilient exports, though this momentum is contributing to deepening deflationary trends," Louise Loo, Head of Asia Economics at Oxford Economics, said in a note. "The cost of strong exports is more deflation," she said. Disagreements also persist between Beijing and Washington, despite the framework agreement reached last month. Trump upped the ante on Monday, warning Russia's trading partners that he will impose "very severe" tariffs reaching 100 percent if Moscow fails to end its war on Ukraine within 50 days. Western nations have repeatedly urged China -- a key commercial ally of Russia -- to wield its influence and get President Vladimir Putin to stop his three-year-old war with Ukraine. "The economic outlook for the rest of the year remains challenging," Capital Economics' Huang said. "With tariffs set to remain high, fiscal ammunition being depleted and structural headwinds persisting, growth is likely to slow further over the second half," she said.
