Seoul: South Korean stocks turned lower late Tuesday morning after new U.S. President Donald Trump ordered his administration to address unfair trade practices globally. Opening some 1 percent higher, the benchmark Korea Composite Stock Price Index had lost 9.26 points, or 0.37 percent, to 2,510.79 as of 11:20 a.m.
According to Yonhap News Agency, after the inauguration ceremony, Trump announced plans to impose tariffs of up to 25 percent on Mexico and Canada starting in February. He also declared intentions to change electric vehicle policies during his inauguration address. Subsequently, he signed executive orders to review free trade agreements, which likely include the Korea-U.S. free trade agreement.
In the Seoul stock market, battery and chemical shares were negatively impacted. Leading battery maker LG Energy Solution fell by 5.4 percent, and POSCO Future M experienced a significant drop of 10.33 percent. Top oil refinery SK Innovation decreased by 4.4 percent, and LG Chem saw a decline of 5.35 percent.
Conversely, chipmakers demonstrated resilience. Chip giant SK hynix rose by 1.42 percent, and Hanmi Semiconductor, a chip equipment producer, gained 2.22 percent. Meanwhile, the local currency was trading at 1,439.35 won against the U.S. dollar at 11:20 a.m., marking an increase of 11.25 won from the previous session.