Trump’s remarks deal a blow to Kospi
The Seoul benchmark Kospi closed at 2.47 points on Friday, or 0.11 percent less than the previous day, after Trump said on Thursday that military action is certainly an option. Other factors, including the potential protests from China against the U.S. defense system on the Peninsula, as well as the monetary policy direction change in Europe, also affected the local stock market.
“The U.S. Senate’s extension of the debt ceiling, U.S. President Donald Trump’s remark on military action and the European Central Bank’s improved growth outlook,” said Seo Sang-young, a researcher at Kiwoom Securities, “are having a positive influence on the local stock market.”
Stocks connected to China saw a drop, including Hyundai Motor, which retreated 1.8 percent to close at 135,500 won ($120), while the Korean automotive group’s part supplier, Hyundai Mobis, saw a sharper drop of 4.7 percent to 225,000 won.
Electronic shares did well, adding 1.5 percent on average. Market bellwether Samsung Electronics added 2 percent to close at 2,454,000 won while SK Hynix, which ranks second by market capitalization after Samsung, increased 1.68 percent to close at 72,600 won. Also, among the top companies by market capitalization, the Korean steel company Posco gained 1.2 percent.
The secondary market Kosdaq closed 4.10 points, or 0.64 percent less than the previous day, at 654.29. Institutional investors were net sellers, while foreign and retail investors were net buyers. The local currency closed at 1,127.50 won against the U.S. dollar, up 1.9 won from the previous session’s close.
Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasuries shed 2.4 basis points at 1.758 percent and the return on the benchmark five-year government bonds lost 3.2 basis points to 1.948 percent.
BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]
with the Korea JoongAng Daily
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