Seoul: Stock woes deepen as new trade war with Japan roils market

[SEOUL] Investors who have stomached the ups and downs of South Korea's stock market this year have just been dealt another blow: resurgent tensions with Japan.

Japan's decision to tighten controls over exports to South Korea of special materials vital to its tech industry erased about 16 trillion won from Samsung Electronics' market cap. SK Hynix has shed 1.5 trillion won. Both Samsung and SK Hynix make up almost a quarter of the benchmark Kospi index."The first victim will be technology firms, resulting in delays in investment or production," said Jeon Kyung-dae, who oversees equities at Macquarie Investment Management Korea.

The Kospi index slumped over 2 per cent on Monday, the biggest drop in two months as volatility climbed. Morgan Stanley said Samsung and SK Hynix have less than three months of inventory of the affected materials, while other media reports said that it could be less than a month. Still, some Korean firms stand to benefit. Shares of local Samsung suppliers jumped this month on expectations that they may win more orders due to Japan's restrictions.The upcoming Japanese upper house election slated for July 21 will be closely watched by investors like HDC Asset's Mr Yoon, who speculated that politicians may use the export ban issue as part of their campaigns.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Japan not thinking of scrapping South Korea export curbs, industry minister saysTOKYO (REUTERS) - Industry minister Hiroshige Seko said on Tuesday (July 9) that Japan was 'not thinking at all' of withdrawing restrictions on Japanese high-tech exports to South Korea and that the curbs did not violate World Trade Organization rules.. Read more at straitstimes.com.
Источник: The Straits Times - 🏆 8. / 63 Прочитайте больше »

South Korea: Stocks fall over 2% on reduced bets on steep US rate cuts[SEOUL] South Korean shares fell over 2 per cent on Monday, the most in two months, as strong US jobs data tempered expectations of aggressive rate cuts by the Federal Reserve, and continued tensions between the world's two largest economies dampened investor sentiment. Read more at The Business Times.
Источник: BusinessTimes - 🏆 15. / 51 Прочитайте больше »