Seoul: Seoul shares broke a seven-day winning streak on Thursday following U.S. President Donald Trump’s comments about new tariffs and the Federal Reserve’s cautious outlook on interest rate cuts. Meanwhile, the Korean won appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 17.46 points, or 0.65 percent, to close at 2,654.06. The trade volume was moderate, with 517.33 million shares exchanged, valued at 14.06 trillion won (US$9.7 billion). The market saw more winners than losers, with 451 stocks rising and 414 falling.
Institutions and foreign investors offloaded a combined 393 billion won worth of stocks, counterbalancing individual investors’ stock purchases totaling 297.95 billion won. Trump’s announcement of impending tariffs on cars, semiconductors, and pharmaceuticals, alongside a recently ordered 25 percent tariff on steel and aluminum imports, has escalated concerns of a global trade war. Analysts suggest these tariffs could significantly impact related industries in South Korea.
Minutes from the latest Federal Reserve meeting, which highlighted a cautious approach to rate cuts, further dampened investor sentiment. “The main index ended in negative territory but didn’t fall sharply as investors expect possible negotiations between the Trump government and major trading partners (of the U.S.) over new tariffs next month,” stated No Dong-kil, an analyst at Shinhan Securities Co.
The declines were led by tech and auto stocks in Seoul. Samsung Electronics fell 0.51 percent to 58,400 won, and SK hynix dropped 2.97 percent to 212,000 won. Hyundai Motor declined 0.49 percent to 203,000 won, while HD Hyundai Heavy Industries saw a significant drop of 11.96 percent to 305,500 won. However, some stocks gained, with LG Energy Solution rising 2.87 percent to 376,500 won and SK Innovation climbing 1.08 percent to 131,400 won.
The Korean won was quoted at 1,437.90 against the U.S. dollar at 3:30 p.m., an increase of 0.6 won from the previous session. Bond prices closed mixed, with the yield on three-year Treasurys falling 0.2 basis points to 2.628 percent, while the return on five-year government bonds rose 0.3 basis points to end at 2.748 percent.