South Korean shares pare early gains on Trump tariff talks

SEOUL: Round-up of South Korean financial markets:

South Korean shares erase early gains as traders eye Trump’s first day

• South Korean shares started the session higher on Tuesday, but cut gains after US President Donald Trump’s tariff comments on the first day of his second term.

• The benchmark KOSPI was up 6.85 points, or 0.27%, at 2,526.90 as of 0343 GMT after rising more than 1% in early trade.

• Trump said on Monday he was mulling imposing 25% tariffs on imports from Canada and Mexico next month.

• South Korea’s acting president Choi Sang-mok said he hoped for bilateral relations with Washington to develop more reciprocally under the Trump administration, citing concerns about how US policies might hit Asia’s fourth-largest economy.

• Hyundai and sister automaker Kia cut early gains of as much as 2.2% and 4.3% respectively on Trump’s tariff comments.

• Battery makers dropped, with LG Energy Solution losing 5% after Trump revoked the previous Biden administration’s executive order on electric vehicles (EVs).

• The shipbuilding sector, on Trump’s radar for cooperation, rallied. HD Hyundai Mipo soared 11%, while Hanwha Ocean jumped 4%.

• Of the total 944 traded issues, 383 advanced and 493 declined.

• Foreigners net sold shares worth 159.1 billion won ($110.6 million).

• The won was quoted at 1,436.4 per US dollar on the onshore settlement platform, 0.25% higher than Monday’s close at 1,440.0.

• In money and debt markets, March futures on three-year treasury bonds rose 0.20 point to 106.98.

• The most liquid three-year Korean treasury bond yield fell by 6.8 basis points to 2.556%, while the benchmark 10-year yield fell by 5.1 basis points to 2.813%.