Latest news with #KospiIndex
Mint
3 days ago
- Business
- Mint
Korea's Reform Drive Gets a Boost as Lawmakers Vote for Changes
South Korea's ambitious plan to improve corporate governance standards got a boost after the parliament voted to approve changes that will help protect the rights of minority shareholders. The revisions to the so-called commercial code include making board members legally accountable to all shareholders, instead of catering largely only to those with significant stakes — such as the founding families of the nation's many conglomerates. Another key change is to limit the voting rights of the largest shareholders and related parties to 3% when appointing the members of an audit committee. South Korean authorities have been seeking to replicate the success seen in Japan, where a push for corporate reforms helped lift stock valuations and spur a world-beating equity rally. Korea unveiled a so-called 'Corporate Value-up Program' in early 2024 with a view to incentivize firms to prioritize shareholder returns. The resolve though has intensified in recent months as newly elected President Lee Jae-myung made lifting governance standards and improving stock-market returns one of his top priorities. Expectations that South Korea is embracing a more shareholder-friendly culture have been a major driver behind this year's surge in the nation's stocks, which has propelled the market's value to over $2 trillion. The benchmark Kospi Index has surged almost 30% in 2025 to be one of the world's best-performing gauges. It largely held its 1.2% gain on Thursday following the outcome of the vote. 'This amendment to the Commercial Act sends a positive signal, as it demonstrates the strong commitment of the government and the National Assembly to corporate governance reform,' said Seokkeun Ha, chief investment officer at Eugene Asset Management in Seoul. 'In the short term, it could provide supportive momentum for the Kospi, backed by expectations of foreign capital inflows. With assistance from Shinhye Kang. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
4 days ago
- Business
- Business Recorder
PSX soars: KSE-100 crosses 130,000 barrier
The record-breaking rally at the Pakistan Stock Exchange (PSX) continued on Wednesday, as the benchmark KSE-100 Index crossed the coveted 130,000 mark, gaining over 1,100 points during intra-day trading. At 12:40pm, the benchmark index was hovering at 130,000.17 level, an increase of 1,800.75 points or 1.40%. Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, PSO, MARI, OGDC, PPL and POL traded in the green. Experts noted that improved economic indicators, including a lowering inflation rate, are contributing to the bullish run. On Tuesday, PSX sustained its bullish momentum, with the benchmark KSE-100 Index registering another record closing mainly attributed to the macroeconomic stability with easing inflation and strengthening rupee, besides hopes of monetary easing in the coming weeks. The benchmark KSE-100 Index surged by a remarkable 2,572.11 points or 2.05% to settle at an all-time high of 128,199.43 points. Internationally, Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. This is an intra-day update
The Star
4 days ago
- Business
- The Star
Asian stocks waver, dollar sags under weight of Trump tariffs, Fed uncertainty
SINGAPORE: Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after U.S. tech firms were hit hard following a strong rally in June. "You've seen it with other trade negotiations that they take years if you want to do them properly," said Matthias Scheiber, senior portfolio manager and the head of the multi-asset solutions team at Allspring Global Investments. "It's not something you negotiate within a week. I think that's also what the U.S. is realising now. If the tariffs get ramped up again and the situation sours, short term, we can definitely see some volatility." Data on Tuesday showed the U.S labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21%. That maintained a bearish bias on the dollar. The euro last bought $1.1799, just below the 3-1/2-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." TRUMP'S BILL Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after U.S. Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark U.S. 10-year yields were steady at 4.245% having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation solidifies a steady deterioration of the fiscal position and the debt trajectory of the U.S. government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the U.S. rate path trajectory have all led investors to flee U.S. assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit U.S. economic growth. That has left the dollar unloved, with the greenback down over 10% for the year in its worst first half performance since the 1970s. The dollar index, which measures the U.S. currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $3,332.19 per ounce, after surging 1% in the previous session. The yellow metal is up 27% this year on safe-haven flows. - Reuters
Business Recorder
4 days ago
- Business
- Business Recorder
Asian stocks waver, dollar sags under weight of Trump tariffs, Fed uncertainty
SINGAPORE: Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. 'You've seen it with other trade negotiations that they take years if you want to do them properly,' said Matthias Scheiber, senior portfolio manager and the head of the multi-asset solutions team at Allspring Global Investments. 'It's not something you negotiate within a week. I think that's also what the US is realizing now. If the tariffs get ramped up again and the situation sours, short term, we can definitely see some volatility.' Data on Tuesday showed the U.S labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to 'wait and learn more' about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21%. That maintained a bearish bias on the dollar. The euro last bought $1.1799, just below the 3-1/2-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. 'Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling,' said Carol Kong, a currency strategist at Commonwealth Bank of Australia. 'The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the US economy.' Trump's bill Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245% having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation solidifies a steady deterioration of the fiscal position and the debt trajectory of the US government. 'The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon.' The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit US economic growth. That has left the dollar unloved, with the greenback down over 10% for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $3,332.19 per ounce, after surging 1% in the previous session. The yellow metal is up 27% this year on safe-haven flows.
Business Recorder
4 days ago
- Business
- Business Recorder
PSX soars: KSE-100 crosses 129,000 barrier
The record-breaking rally at the Pakistan Stock Exchange (PSX) continued on Wednesday, as the benchmark KSE-100 Index surged past the 129,000 mark, gaining over 1,100 points in the opening minutes of trading. At 9:50am, the benchmark index was hovering at 129,355.93 level, an increase of 1,156.51 points or 0.90%. Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, PSO, MARI, OGDC, PPL and POL traded in the green. On Tuesday, PSX sustained its bullish momentum, with the benchmark KSE-100 Index registering another record closing mainly attributed to the macroeconomic stability with easing inflation and strengthening rupee, besides hopes of monetary easing in the coming weeks. The benchmark KSE-100 Index surged by a remarkable 2,572.11 points or 2.05% to settle at an all-time high of 128,199.43 points. Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. This is an intra-day update
