South Korea stock market: Hyundai Rotem to LIG Nex1 — defence stocks rise despite renewed fear of Trump's tariffs
Japan and South Korea are among the major trading partners of the US, from the countries, on which Trump has announced fresh tariffs of 25%.
However, Trump has given an extension in the tariff deadline to August 1 from July 9 earlier, to reach a trade deal or be subjected to new tariff rates, providing investors hope that trade negotiations would be reached.
Additionally, Trump said on Tuesday that South Korea should be paying for its own military protection, suggesting the US ally needed to pay more for the US troop presence there, a day after the tariff announcement.
Any increase in military autonomy may accelerate investments by South Korea in its own defence capabilities, which could boost domestic defence spending, leading to increased orders for local defence contractors.
This is positive for companies like Hanwha Aerospace, LIG Nex1, Korea Aerospace Industries (KAI), Hyundai Rotem, etc, further explaining the rise in South Korean defence stocks.
Against this backdrop, the South Korean defence stocks rallied up to 12% in intraday deals today, led by SolDefense. The company produces guided weapons, avionics, scientific training systems, and tactical communication systems. Additionally, LIG Next1 was trading 9% higher, Hyundai Rotem shares gained over 6% and Hanwha Aerospace was up nearly 5%.
South Korean shares rose for a third straight session on Wednesday, as financial stocks rallied on policy hopes, while the broader market's focus was on US tariffs and domestic monetary policy, as per a Reuters report.
The benchmark KOSPI was up 15.53 points, or 0.50%, at 3,130.48.
"A significant takeaway from the recent global market trends is that the markets are largely ignoring the noise from the tariff front and are waiting for clarity to emerge," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, explaining market reaction to Trump tariffs.
President Trump's latest declarations of 50% tariffs on copper imports, 10% tariffs for just being in BRICS, no further extension of the August 1st deadline and a potential 200 % tariffs on pharmaceutical imports with a grace period of one year… are all not taken seriously by the markets since Trump has a track record of chickening out and changing his announcements, he added. "In brief the markets are waiting for clarity to emerge on the trade front."
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
28 minutes ago
- Mint
Trump Threatens Washington Commanders' Stadium Over Name Change
President Donald Trump threatened to block the Washington Commanders' bid to build a new stadium in the District of Columbia, escalating his feud with the NFL franchise over its decision to change its name from the Redskins. 'I may put a restriction on them that if they don't change the name back to the original 'Washington Redskins,' and get rid of the ridiculous moniker, 'Washington Commanders,'' Trump said in a post on Truth Social. 'I won't make a deal for them to build a Stadium in Washington.' Trump has previously complained about the football team's decision to change its name amid concerns the old name was a slur against Native Americans. Earlier Sunday, he had asserted there was a 'big clamoring' to switch it back. 'Our great Indian people, in massive numbers, want this to happen,' Trump posted. 'Their heritage and prestige is systematically being taken away from them. Times are different now than they were three or four years ago. We are a Country of passion and common sense. OWNERS, GET IT DONE!!!' The Commanders didn't immediately respond to a request for comment. Trump also leveled criticism at the Cleveland Guardians, the Major League Baseball team that changed its name from the Cleveland Indians in 2021. Trump has sought to reverse other name changes done in an effort to be racially or culturally sensitive. Trump is limited in what he can do about sports teams outside Washington, DC. But the Commanders plan to build a new stadium on land that has been managed by the US National Park Service. The tract's RFK Stadium was home to the team for roughly three decades until 1996. With assistance from Nathan Risser. This article was generated from an automated news agency feed without modifications to text.
Deccan Herald
an hour ago
- Deccan Herald
Russian rouble weakens against US dollar after fresh EU sanctions
The Russian rouble weakened against the U.S. dollar and China's yuan on Friday after the European Union agreed on its 18th package of sanctions against Russia over its war in Ukraine, which included measures against the Russian energy industry. As of 1245 GMT, the rouble was 0.8% lower at 78.70 per U.S. dollar, according to data compiled by LSEG, based on over-the-counter quotes. The rouble is up about 45% against the dollar since the start of the year. The rouble, insulated from global financial flows by Russian currency controls and Western sanctions, remained strong despite a change in the attitude of U.S. President Donald Trump toward Russia in recent weeks. Analysts said the new EU sanctions will have little impact. The rouble is receiving support from more foreign currency sales by the central bank. "Sanctions will increase pressure on the Russian economy, but their effect may be limited. Russia will continue to reorient its exports towards Asia," Russian Agricultural Bank analysts said in a research note. The EU will set a moving price cap on Russian crude at 15% below its average market price, but Russia has so far managed to sell most of its oil above the previous price cap as the current mechanism makes it unclear who must police its implementation. The last time the rouble took a hit from Western sanctions was when the U.S. imposed sanctions on Gazprombank, which handled Russia's energy trade, in November 2024. The rouble rallied against all major currencies early this year, in large part due to hopes for a U.S.-mediated peace deal with Ukraine, which have since evaporated.
Time of India
an hour ago
- Time of India
Donald Trump sparks outrage by demanding Washington Commanders name reversal request
Donald Trump sparks outrage by demanding Washington Commanders name reversal request (Image via Getty) On July 20, 2025, President Donald Trump used his Truth Social account to call for an immediate change of the NFL's Washington Commanders back to the Washington Redskins and MLB's Cleveland Guardians back to the Cleveland Indians. He wrote that 'our great Indian people, in massive numbers, want this to happen' and urged team owners to 'GET IT DONE!!!' Trump argued that restoring the old titles would honour Indigenous heritage rather than erase it. US President Donald Trump urges Washington Commanders to return to Redskins name US President Trump's post appeared on Sunday, July 20, on Truth Social, a platform he launched after leaving office. He declared that the Washington 'Whatever's' must 'IMMEDIATELY change their name back to the Washington Redskins Football Team' and added that fans are clamouring for the move . He also insisted that the Cleveland Indians name carry more history than the current Guardians label, though baseball's 'original six' term applies to hockey, not baseball . Donald Trump said the renaming is not about disrespect but preserving 'heritage and prestige' for Native Americans. US President Donald Trump also wants Cleveland Guardians to bring back Indians name The football franchise began as the Boston Braves in 1932, became the Boston Redskins in 1933, and moved to Washington in 1937. The club used the Redskins name until 2020, briefly played as the Washington Football Team, then rebranded to Commanders in 2022 after criticism of the old name's offensiveness. Cleveland dropped 'Indians' and its 'Chief Wahoo' logo after 2021, adopting Guardians to respect calls against racial stereotypes. Both owners, Josh Harris of Washington and Chris Antonetti of Cleveland, have said they plan no further changes. Also Read: 'She Is Very Talented': Melania Trump Defied Donald Trump With Taylor Swift Praise While Travis Kelce Stood Loyal By Her Side Despite Donald Trump's request, neither franchise has signalled a reversal. Commanders owner Josh Harris told reporters in February that the new name embodies modern values and team spirit. Guardians president Chris Antonetti has similarly defended the current identity, saying it unites players and supporters under a fresh banner. FAQs 1. When did Donald Trump call for the Washington Redskins name return? On July 20, 2025, Trump posted the demand on Truth Social. 2. Why did the Redskins and Indians change their team names? They changed names due to criticism that the old names were offensive to Native Americans. 3. Who owns the Washington Commanders and Cleveland Guardians? Josh Harris owns the Commanders; Chris Antonetti leads the Guardians. Catch Rani Rampal's inspiring story on Game On, Episode 4. Watch Here!
