SEOUL: Round-up of South Korean financial markets:
South Korea stocks slip as investors turn cautious ahead of US election
South Korean shares fell for a third straight session on Thursday, as battery makers extended losses on worries about weaker demand for electric vehicles following Donald Trump’s win in the US presidential election.
The benchmark KOSPI was down 3.39 points, or 0.13%, at 2,560.12 as of 0211 GMT.
Battery maker LG Energy Solution slid 1.66%, after dropping 7% on Wednesday, which was the biggest daily loss in a year.
Peer Samsung SDI fell 2.8% to its lowest level since May 2020, while SK Innovation lost 4%.
Trump is seen as less supportive of climate-friendly policies, including subsidies for EVs, than Harris, analysts said.
Hyundai Motor rose 0.48%, while sister automaker Kia Corp lost 0.84%. On Wednesday, they shed 4% and 2.1%, respectively, amid worries about potential tariffs.
South Korea’s trade surplus with the US is at a record high, with automobiles accounting for the biggest share of its US exports.
“It seems that there is ‘trauma’ from trade disputes during the first Trump presidency weighing on investor sentiment,” said Han Ji-young, an analyst at Kiwoom Securities.
South Korea’s trade minister said on Wednesday he saw domestic companies investing more in the United States if the next US administration introduces higher tariffs.
Shares of South Korean shipbuilders rallied after Trump said the United States’ shipbuilding industry needed South Korea’s support.
Of the total 938 traded issues, 281 shares advanced, while 589 declined.
Foreigners were net buyers of shares worth 26.2 billion won ($18.76 million).
The won was quoted 0.04% lower at 1,399.8 per dollar on the onshore settlement platform, after hitting a two-year low of 1,404.5.
The most liquid three-year Korean treasury bond yield fell by 3.5 basis points to 2.925%, while the benchmark 10-year yield fell by 4.6 basis points to 3.107%.
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