President Donald Trump announced plans to hike tariffs on South Korean imports to 25%, up from the current 15%. He cited the South Korean legislature’s failure to ratify a trade deal finalized in late 2025 as the primary reason for the increase. The move targets key sectors including automobiles, pharmaceuticals, and lumber.
Despite the news, South Korean equities remained resilient. The benchmark Kospi index rebounded from early losses to hit new record highs, largely supported by intense dip buying. Key highlights from the market reaction include:
Investors appear to be looking past the protectionist rhetoric, focusing instead on strong domestic earnings. However, the 10% rate hike remains a significant hurdle for the economy if finalized.
Escalating Middle East tensions pushed oil prices higher following a deadly drone strike on Saudi Aramco's Shaybah facility, renewing inflation concerns and expectations for further Federal Reserve tightening.
Rising oil prices renewed inflation concerns as uncertainty surrounding the US-Iran conflict and continued disruptions in the Strait of Hormuz reinforced expectations for further monetary tightening.
Elevated oil prices and rising Treasury yields weighed on precious metals as persistent geopolitical tensions reinforced inflation concerns and expectations for further Federal Reserve tightening.
Then Join Our Telegram Channel and Subscribe Our Trading Signals Newsletter for Free!
Join Us On Telegram!
