SEOUL: Round-up of South Korean financial markets:
** South Korean shares fell nearly 4% on Friday to post their biggest daily decline since early April, as U.S. tariffs and domestic tax hikes dented investor sentiment.
** The benchmark KOSPI closed down 126.03 points, or 3.88%, at 3,119.41, marking its biggest daily percentage fall since April 7. The index ended the week 2.4% lower, also the biggest since early April.
** The KOSPI underperformed the broader Asian market, which was also pressured by a slew of new U.S. tariffs, but was down less than 1%.
** U.S. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs on U.S. imports from dozens of countries, including a 15% tariff on South Korea, lower than a threatened 25% but higher than the current 10%.
** South Korea’s exports rose for the second straight month in July on strong chip demand and shipments being moved forward ahead of higher U.S. tariffs.
** South Korea’s government put forward plans on Thursday to roll back recently imposed tax cuts, such as those on corporate income and stock investments.
** “Scepticism heightened over the government’s push to boost the domestic stock market, with hopes of market-friendly policies retreating,“ said Lee Kyoung-min, an analyst at Daishin Securities.
** Among index heavyweights, chipmaker Samsung Electronics fell 3.50%, while peer SK Hynix lost 5.67%. Battery maker LG Energy Solution slid 2.48%.
** Hyundai Motor and sister automaker Kia Corp were down 1.41% and 1.47%, respectively. Steelmaker POSCO Holdings shed 5.83%, while drugmaker Samsung BioLogics fell 3.09%.
** Securities firms dropped 6.48%, while financial groups fell 4.95%.
** Of the total 935 traded issues, only 38 shares advanced, while 885 declined.
** Foreigners were net sellers of shares worth 656.4 billion won ($467.01 million).
** The won was quoted at 1,401.4 per dollar on the onshore settlement platform, 0.67% lower than its previous close at 1,392.0.
** The most liquid three-year Korean treasury bond yield rose by 1.7 basis points to 2.480%, while the benchmark 10-year yield rose by 4.3 basis points to 2.833%. ($1 = 1,405.5300 won) - Reuters
