Kospi sheds 0.55% as new Trump tariff threat spooks investors

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Kospi sheds 0.55% as new Trump tariff threat spooks investors

Published: 26 Nov. 2024, 16:17

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,520.36 points on Tuesday, down 0.55 percent, or 13.98 points, from the previous trading session. [YONHAP]

Shares fell Tuesday as investors sat on the sidelines following sharp gains the previous session, with U.S. President-elect Donald Trump vowing tariffs on imports from Canada, Mexico and China. The local currency rose in value against the dollar.

The Kospi shed 13.98 points, or 0.55 percent, to close at 2,520.36, ending a two-day winning streak. The Kosdaq fell 3.68 points, or 0.53 percent, to 693.15.

Trade volume was moderate at 434.77 million shares worth 8.51 trillion won ($6.09 billion), with winners outnumbering losers 484 to 389.

The index opened lower, despite U.S. rallies, and remained in negative territory throughout the session.

Investors were wary of Trump's tariff policy as he pledged to impose a 25 percent tariff on all goods from Mexico and Canada, as well as an additional 10 percent tariff on goods from China.

Institutions and foreigners sold a net 238.47 billion won and 35.46 billion won of shares, respectively, while individuals bought a net 187.2 billion won worth of shares.

Big-cap tech shares traded mixed, with bio and financial shares under heavy downward pressure.

Samsung Electronics rose 0.69 percent to 58,300 won, and SK hynix edged up 0.06 percent to 177,100 won.

But EV battery maker LG Energy Solution sank 3.22 percent to 406,000 won, while LG Chem went up 0.16 percent to 307,000 won.

Pharmaceutical firm Samsung Biologics dipped 3.03 percent to 929,000 won, and Celltrion shed 0.68 percent to 175,600 won.

KB Financial Group dropped 2.04 percent to 96,000 won, and Shinhan Financial Group tumbled 3.72 percent to 54,300 won.

Carmakers ended higher, however, with Hyundai Motor advancing 2.05 percent to 223,500 won, and its affiliate Kia adding 0.1 percent to 97,300 won.

The local currency was trading at 1,398.2 won against the greenback at 3:30 p.m., down 4 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds gained 0.1 basis points to 2.774 percent, and the return on the benchmark 10-year U.S. government bonds fell 12.6 basis points to 4.282 percent.

BY KIM JU-YEON, YONHAP [[email protected]]