South Korean shares fall as battery makers extend losses on Trump’s win
- KOSPI was down 3.39 points, or 0.13%, at 2,560.12
SEOUL: Round-up of South Korean financial markets:
South Korea stocks slip as investors turn cautious ahead of US election
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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.
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The benchmark KOSPI was down 3.39 points, or 0.13%, at 2,560.12 as of 0211 GMT.
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Battery maker LG Energy Solution slid 1.66%, after dropping 7% on Wednesday, which was the biggest daily loss in a year.
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Peer Samsung SDI fell 2.8% to its lowest level since May 2020, while SK Innovation lost 4%.
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Trump is seen as less supportive of climate-friendly policies, including subsidies for EVs, than Harris, analysts said.
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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.
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South Korea’s trade surplus with the US is at a record high, with automobiles accounting for the biggest share of its US exports.
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“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.
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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.
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Shares of South Korean shipbuilders rallied after Trump said the United States’ shipbuilding industry needed South Korea’s support.
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Of the total 938 traded issues, 281 shares advanced, while 589 declined.
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Foreigners were net buyers of shares worth 26.2 billion won ($18.76 million).
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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.
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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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