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.
Global markets remained focused on shifting Middle East developments and monetary policy expectations, with reports of progress toward a Strait of Hormuz shipping agreement influencing sentiment.
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Weak Jobs Data Hits Dollar as Hormuz Risks Persist (10 – 14 August)Global markets entered the week as investors reassessed the Federal Reserve's outlook after a surprisingly weak US employment report signaled further deterioration in labor market conditions. The Dollar Index fell toward a two-month low, while gold and silver held onto strong weekly gains as expectations for a September Fed rate hike dropped sharply. At the same time, uncertainty surrounding the Strait of Hormuz continued to influence oil prices and global inflation expectations, with Iran and Oman reporting progress toward a transit agreement but no broader resolution yet reached.
Detail Weak Jobs Data Supports Metals and Currencies (08.10.2026)Global markets opened the week with the dollar under pressure after unexpectedly weak U.S. employment data reduced expectations for a September Federal Reserve rate hike.
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