Journalist

Kim Yeon-jae
  • Asian markets rally on US optimism; Korean won volatile amid yen carry trade concerns
    Asian markets rally on US optimism; Korean won volatile amid yen carry trade concerns SEOUL, December 12 (AJP) - Asian equity markets rallied across the board on Friday, lifted by optimism from Wall Street after U.S. Federal Reserve Chair Jerome Powell’s hawkish rate cut was interpreted as a signal that the American economy may avoid a recession. Despite the market rebound, currency volatility persisted. The Korean won closed at 1,476.3 per dollar as of 4 p.m., up 3.8 won from the previous session, amid concerns that it could again test the 1,480 level. Fears of a potential unwind of yen carry trades continued to weigh on foreign exchange markets. Government bond yields were mixed. The three-year Korean Treasury yield fell 8 basis points to 3.093 percent following the Fed decision, while the 10-year yield rose 3.1 basis points to 3.409 percent after the government formally announced plans to establish a sovereign wealth fund. South Korea’s benchmark KOSPI gained 1.38 percent to close at 4,167.16. Institutional investors drove the rally, net buying 1.42 trillion won ($962 million). Foreign investors also supported the market with net purchases of 41.3 billion won, while retail investors took profits, selling 1.46 trillion won. Blue-chip stocks advanced broadly. Samsung Electronics rose 1.49 percent to 108,900 won, while SK hynix added 1.06 percent to 571,000 won. Hyundai Motor Group shares also strengthened as investors bet on resilient U.S. economic conditions and consumer demand. Hyundai Motor climbed 2.03 percent to 301,500 won, Hyundai Mobis gained 4.72 percent to 377,500 won, and Hyundai Engineering & Construction posted one of the day’s sharpest gains, jumping 5.98 percent to 78,000 won. Defense stocks traded higher on persistent geopolitical risks and expectations that a weaker won would bolster export competitiveness. Hanwha Aerospace surged 6.31 percent to 961,000 won, Hyundai Rotem rose 4.02 percent to 186,400 won, and LIG Nex1 gained 2.82 percent to 383,000 won. Japan’s Nikkei 225 also advanced, closing 1.37 percent higher at 50,836.55. Export-oriented Japanese stocks were among the strongest performers. Toyota, the market capitalization leader, climbed 4.82 percent to 3,260 yen (20 dollars and 90 cents), while Honda rose 1.78 percent to 1,600 yen. AI power grid-related shares also tracked higher. Tokyo Electric Power Company (TEPCO) gained 5.54 percent to 661 yen, and Hitachi closed 4.24 percent higher at 5,010 yen. Taiwan’s TAIEX posted a more moderate rise, closing 0.62 percent higher at 28,198.02. TSMC gained 0.68 percent to 1,480 Taiwan dollars (47 dollars and 43 cents), while MediaTek rose 0.72 percent to 1,405 Taiwan dollars. Greater China markets also finished higher. The Shanghai Composite Index edged up 0.41 percent to 3,889.35, while the Shenzhen Component rose 0.84 percent to 13,258.33. Hong Kong’s Hang Seng Index, which is sensitive to U.S. market moves, outperformed the region, climbing 1.64 percent to 25,950 as of 4:40 p.m. 2025-12-12 17:05:42
  • Defensive of KRW, Seouls attention shifts to potential rate hike in Japan after U.S. rate cut
    Defensive of KRW, Seoul's attention shifts to potential rate hike in Japan after U.S. rate cut SEOUL, December 11 (AJP) - A U.S. rate cut typically delivers immediate relief to Korean financial markets. This time, it barely moved sentiment. Investors quickly pivoted to risks emerging across the Pacific — namely the possibility of a Japanese rate hike that could unleash sweeping reversals of international capital leveraged through decades of zero-interest Japanese funding. As widely expected, the U.S. Federal Reserve delivered a third consecutive rate cut, lowering the federal funds rate to 3.50–3.75 percent and narrowing the gap with Korea’s base rate at 2.50 percent. A smaller interest differential usually encourages capital to remain in Korea. That pattern did not materialize. The dollar jumped 6.70 won to 1,473.30. The KOSPI fell 0.6 percent and the KOSDAQ slipped 0.04 percent on Thursday. The 10-year government bond yield inched up to 3.378 percent from Wednesday's 3.371 percent. BOJ policy and JGB yields fuel unwind fear The yen carry scare has returned. The Bank of Japan is under pressure to move on interest rates as long-term yields — those attached to financial products with maturities of one year or more — rise faster than authorities expected, heightening inflation risk. BOJ Governor Kazuo Ueda acknowledged the shift during a parliamentary budget committee session on Tuesday, reiterating earlier signals pointing toward an eventual rate hike. Japan for decades tolerated a weak yen to boost export competitiveness and fight deflation. The “yen carry trade” — in which global investors borrow cheap yen and invest in higher-yielding assets abroad — was central to this strategy. The trade thrived when Japanese interest rates stayed pinned at zero while U.S. and global rates surged during the tightening cycle. But with Japanese inflation now hitting the 2 percent target and concerns of overshooting rising, the BOJ’s stance is changing. A shift toward Japanese tightening — as the U.S. loosens — raises the risk of a carry trade unwind, which can drain capital from markets heavily reliant on foreign funds. Korea is particularly vulnerable when the won hovers near crisis-level ranges. Deputy chiefs overseeing fiscal, monetary, and financial policy convened an emergency macro-financial meeting Thursday, warning that vulnerabilities in the bond and FX markets could intensify under diverging global monetary conditions. The won fell 3.2 percent against the dollar in November, steeper than the Taiwanese dollar’s 1.9 percent decline and the Japanese yen’s 1.4 percent. Much of the downward pressure stems from a combination of rapid M2 money supply expansion and persistent net outflows stemming from individuals’ and institutions’ high overseas investment appetite. Analysts agree that a carry-trade unwind could accelerate the won’s decline but stop short of calling the situation a crisis. “Unlike last year, when yen futures were net short, this year long positions dominate. The market has already anticipated a BOJ rate hike,” said Cho Yong-gu, researcher at Shinyoung Securities. He added that for the Korean won and bond yields to stabilize, a BOJ rate hike could paradoxically be helpful, as it would calm super long-term JGB yields and prevent broader turmoil in Asian currency markets. Japanese government bond yields have been stoking unwind fears. The 10-year JGB yield has nearly doubled in a year, rising from 1.054 percent on Dec. 9, 2024 to 1.956 percent on Wednesday — surpassing the 1.87 percent level recorded in December 2008. A surge driven partly by heavy Japanese government bond issuance to fund stimulus has amplified inflation concerns, making BOJ tightening more urgent. Experts also bet on BOJ tightening Markets remain divided on the BOJ’s next move, as government and central bank signals continue to diverge. Heo Seong-woo, researcher at Hana Securities, said that expectations of rising inflation and wage growth — pushing the BOJ toward a December rate hike — have contributed to climbing JGB yields. “Core CPI, excluding fresh food, has risen to 3 percent, and super-core CPI, excluding energy, has increased to 3.1 percent. Prices are clearly climbing, and the government bond bid-to-cover ratio was poor compared to last year. The BOJ has no choice but to raise rates.” Yen market positioning also supports the case for tightening. Researcher Cho of Shinyoung noted that the yen’s exchange rate is above 155 per dollar, approaching the 162 level reached in July when the carry trade last unwound. He added that the 160 mark is considered a psychological ceiling in Tokyo markets. “We must remember that July’s unwind occurred during a decoupling — the U.S. Fed was cutting rates while the BOJ was tightening,” Cho said, arguing that another rate hike is “predictable.” 2025-12-11 17:40:17
  • Yen carry trade unwind weighs on Asian stocks despite Fed rate cut
    Yen carry trade unwind weighs on Asian stocks despite Fed rate cut SEOUL, December 11 (AJP) - Asian markets slipped or traded flat on Thursday as investors braced for a potential Bank of Japan interest rate hike and a broader unwinding of the yen carry trade. The U.S. Federal Reserve’s earlier rate cut offered limited support, with sentiment pressured further after the Fed signaled a more hawkish policy outlook that tempered hopes for additional easing. The Korean won weakened to 1,472.4 per dollar as of 4:40 p.m., down 5.8 won, amid expectations that capital could shift toward Japan should rates rise there. South Korean government bond yields were mixed. The three-year yield edged up 0.6 basis points to 3.101 percent, while the 10-year yield slipped 0.7 basis points to 3.378 percent, with both remaining above the 3 percent level. The benchmark KOSPI finished 0.59 percent lower at 4,110.62. Institutional investors drove the decline with net sales of 776.6 billion won ($520 million). Foreign investors purchased 347.2 billion won, while retail investors bought 408.8 billion won. Chipmakers led the downturn. SK hynix fell 3.75 percent to 565,000 won, while Samsung Electronics eased 0.65 percent to 107,300 won. Export-oriented names were also dragged lower: Hyundai Motor, typically a beneficiary of a weaker won, closed 2.31 percent down at 295,500 won. The day’s most active theme centered on redevelopment prospects for the Seoul Express Bus Terminal. Shinsegae climbed 4.28 percent to 256,000 won, while Dongyang Express surged 30 percent to 60,900 won and Chunil Express jumped 26.56 percent to 457,500 won. The tech-heavy KOSDAQ ended virtually unchanged at 934.64. Japan’s Nikkei 225 dropped 0.9 percent to 50,148.82 as renewed expectations of a BOJ rate increase pressured exporters and raised speculation that Prime Minister Sanae Takaichi’s stimulus plans may be put on hold. Heavy industry stocks led losses, with Mitsubishi Heavy Industries plunging 4.59 percent to 4,050 yen ($26). Automakers fared better on views they were already undervalued: Toyota dipped 0.19 percent to 3,110 yen and Honda slipped 0.22 percent to 1,572 yen. Semiconductor stocks were mixed. Advantest jumped 4.42 percent to 21,040 yen, while Tokyo Electron fell 1.57 percent to 32,600 yen. Taiwan’s TAIEX retreated 1.32 percent to 28,024.75, dragged down by chipmakers. TSMC lost 2.33 percent to 1,470 Taiwan dollars ($47), and MediaTek tumbled 4.45 percent to 1,395 Taiwan dollars, breaking below the NT$1,400 mark. Mainland Chinese markets also weakened on concerns about yen carry trade unwinding. The Shanghai Composite slipped 0.7 percent to 3,873.32, while the Shenzhen Component dropped 1.27percent to 13,147.39. Hong Kong’s Hang Seng Index was little changed at 25,530. Early gains evaporated on fears of capital outflows, but the index’s U.S. dollar peg and expectations that the Fed’s rate cut would ease valuation pressure helped limit losses. 2025-12-11 17:21:42
  • Koreas job strength mostly led by temp hires in services, youth jobless deepens
    Korea's job strength mostly led by temp hires in services, youth jobless deepens SEOUL, December 10 (AJP) - South Korea’s labor market continued to show an increasingly asymmetric pattern in November, with headline employment gains masking a deepening slump among young adults and a widening pool of NEET (not in education, employment or training) youth. The number of people on payroll reached 29.05 million, up 225,000 from a year earlier, yet employment among those aged 15 to 29 fell by 177,000 over the same period, according to the Ministry of Data and Statistics on Wednesday. The youth employment rate dropped 1.2 percentage points to 44.3 percent, extending its decline to a 19th consecutive month. Overall, job conditions improved modestly for older cohorts: employment rose 0.2 percentage point to 80.9 percent for those aged 30–39, 1.2 percentage points to 80.7 percent for those 40–49, and 0.5 percentage point to 78 percent for those 50–59. Youth unemployment deteriorated, climbing 0.2 percentage point month-on-month to 5.5 percent, more than double the national jobless rate of 2.2 percent. The divergence from older workers widened, as unemployment continued to fall among those aged 50 and above. The “idled” population — who voluntarily dropped out of the labor force despite being physically able — further underscored the strain on the young. People aged 15–29 accounted for 16.3 percent in the idled group, second to the retired age of 60 and older who made up 45.1 percent. Those who gave up job hunt after futile job search numbered 353,000, up 18,000. Employers cite a prolonged domestic slump across manufacturing, construction, and agriculture. Construction posted the sharpest decline, shedding 131,000 workers from a year ago, reflecting a deep downturn spanning housing, civil engineering, and infrastructure. Manufacturers cut 41,000 jobs — the smallest drop since October 2024 but still indicative of weak industrial momentum. Agriculture, forestry and fisheries lost 132,000 workers, or 8.6 percent, as employers increasingly turn to foreign labor to offset Korea’s high minimum wage. Most of November’s job gains came from the services sector, heavily reliant on temporary and irregular hires. Employment in healthcare and welfare services rose 281,000, or 9.3 percent, buoyed by demographic-driven demand. Jobs in arts, sports, and leisure increased by 61,000, reflecting a rebound in consumer-facing spending even as the broader economy slows. 2025-12-10 14:58:16
  • Asian markets continue to hold breadth until Fed chair speaks
    Asian markets continue to hold breadth until Fed chair speaks SEOUL, December 10 (AJP) - Asian markets moved cautiously on Wednesday as investors held their breadth ahead of the U.S. Federal Open Market Committee decision, due at 6 a.m. Thursday Korean Standard Time, leaving the region in a subdued holding pattern for clues on next year’s rate path. The Korean won was steady at 1,469 per dollar as of 10:50 a.m., with traders perplexed by speculation that the National Pension Service may issue foreign currency–denominated bonds as part of a won–dollar hedging strategy. The KOSPI slipped 0.2 percent to 4,135 in a classic wait-and-see stance ahead of the Fed. Foreign investors were net buyers of 48.8 billion won ($33.2 million), while retail investors sold 46.5 billion won and institutions offloaded 9.2 billion won. SK hynix climbed 2.3 percent to 580,000 won after reports it may pursue an American Depositary Receipt listing using its treasury shares, while Samsung Electronics moved the other way, falling 0.65 percent to 107,700 won as foreign-led profit-taking weighed on the stock. Battery names also rallied. Samsung SDI rose 2.9 percent to 319,000 won after securing a 2 trillion won contract to supply lithium iron phosphate (LFP) batteries for energy storage systems to a U.S. energy infrastructure company. Entertainment stocks saw a rare lift, with HYBE up 5 percent at 306,000 won on expectations of full-group BTS activity in 2026. Hyundai Motor Group shares were mostly weak. Hyundai Motor lost 2.3 percent to 300,000 won, and Hyundai AutoEver slipped 1.3 percent to 297,500 won. The tech-heavy KOSDAQ traded sideways near 932, with retail investors net buying 143 billion won, while foreigners sold 64 billion won and institutions 48 billion won. Japan’s Nikkei 225 was flat at 50,690 as investors likewise avoided directional bets before the FOMC outcome. A rotation into defensive consumer names lifted automakers: Toyota gained 1.8 percent to 3,120 yen ($19.9) on strong North American hybrid sales, while Honda surged 4.3 percent to 1,590 yen. Semiconductor stocks were softer, with Advantest down 0.75 percent at 20,105 yen, Tokyo Electron 0.2 percent lower at 33,520 yen, and Ibiden and Kioxia each down 0.45 percent. Taiwan’s TAIEX edged 0.5 percent higher to 28,315, supported by modest gains in semiconductor bellwethers. TSMC rose 0.7 percent to 1,490 Taiwan dollars ($47.8), while MediaTek advanced 0.7 percent to 1,430 Taiwan dollars. Across the Strait, Chinese equities opened lower after CPI data released just before the bell came in far below expectations, renewing concerns about persistent disinflation. The Shanghai Composite fell 0.55 percent to 3,888, slipping below the 3,900 threshold. The Shenzhen Component dropped 0.75 percent to 13,171, and Hong Kong’s Hang Seng Index declined 0.6 percent to 25,285. 2025-12-10 11:37:33
  • Record M2 fuels weak won structure, binds policy for Seoul authorities
    Record M2 fuels weak won structure, binds policy for Seoul authorities SEOUL, December 09 (AJP) - South Korea's broad money supply has ballooned to levels last seen during the pandemic stimulus peak, and the liquidity glut is weighing heavily on the won while narrowing policy maneuvering room for authorities. M2 money supply, which includes bonds, time and savings deposits, and equity-type deposits, grew 8.5 percent to a record 4,430.5 trillion won ($3.01 trillion) as of September, Bank of Korea (BOK) data showed. The growth far outpaces Korea’s sub-1 percent economic growth and is the steepest since November 2021, when fiscal and monetary stimulus was deployed at full scale to fight the pandemic recession. Twin fiscal and monetary easing, asset inflation driven by hectic stock and housing purchases, and a widening current-account surplus all contributed to the extraordinary liquidity build-up. Korea’s current-account surplus from January to October reached 89.58 billion dollars, the highest ever for the period and on track for an annual record of 115 billion dollars. The supplemental spending package approved in June added further liquidity, including 13.9 trillion won in consumption coupons across two rounds, according to the Korea Development Institute. Korea’s M2 also counts Exchange Traded Funds (ETFs), unlike other countries. ETF balances swelled alongside the near 70-percent rally in the KOSPI so far this year. Even excluding ETFs, M2 growth stands at 6.3 percent, still sharply above the U.S.’s 4.6 percent and more than three times Japan’s 1.8 percent. BOK Governor Rhee Chang-yong acknowledged in a November rate briefing that “looking at the money flowing into the stock market, foreign exchange market, and real estate currently, it is true that a lot of liquidity has been released.” The classic rule of thumb is that too much money supply dilutes currency value. Experts argue the imbalance reflects policy failures, as radical stimulus inflated asset prices more than it strengthened the underlying economy. Former Financial Services Commission Chairman Kim Seok-dong pointed to the world’s highest level of household debt as the structural outcome of this misalignment. Without remedying household leverage, which restricts both upward and downward policy flexibility, he said, the weak-won structure cannot be resolved. Household loans reached an all-time high of 1,845 trillion won as of September. The household debt-to-GDP ratio stood at 89.7 percent in the second quarter, the second-highest globally. Mortgage loans accounted for 1,159.6 trillion won, more than 60 percent of total household loans, underscoring persistent demand for housing. The stock boom added to the pressure: margin loan financing jumped to 27 trillion won as of December 5, up 68.5 percent from six months earlier, according to the Korea Financial Investment Association. Analysts warn that the rapid monetary expansion risks stoking inflation and strengthening the debt cycle, further undermining the currency. The won has hovered around 1,470 per dollar for about a month, roughly 8 percent weaker than in June. Prolonged fixation in the upper 1,400 range, or a move toward 1,500, would raise concern for an economy dependent on imported energy and materials. Inflation has remained above 2 percent for three consecutive months, rising 2.4 percent in October from a year earlier. Fuel prices have also jumped. The average gasoline price in Seoul reached 1,807 won per liter on December 7, up more than 80 won from early October, according to KNOC’s Opinet. Under textbook conditions, defending the currency would require raising the policy rate. But the BOK faces a bind: growth is crawling, prices remain elevated, and household leverage makes additional tightening risky. As pressure builds, excess domestic liquidity has begun to escape through foreign exchange markets. Korean nationals’ overseas stock purchases surged to 18 billion dollars in October, more than double September’s 8.5 billion and six times the 2.93 billion dollars foreign investors deployed into Korean stocks. Institutional outflows add structural pressure. The National Pension Service allocates 37.3 percent of its assets to overseas equities and 58 percent when including bonds and alternatives, creating chronic demand for foreign currency. Authorities warn that textbook metrics alone will not calm the market. KB Kookmin Bank economist Lee Min-hyuk noted that Korea’s ratio of short-term foreign debt to foreign reserves is 38.3 percent, far below the 286 percent recorded at the height of the 1997 crisis. But he cautioned that leaving the weak-won structure unattended risks unnecessary FX market spending and, eventually, erosion of foreign confidence. 2025-12-09 14:02:15
  • Asian markets remain reserved in FOMC week
    Asian markets remain reserved in FOMC week SEOUL, December 09 (AJP) - Asian equity markets remained cautious ahead of the Federal Reserve’s Federal Open Market Committee (FOMC) meeting this week, with investors bracing for any signal that may accompany the widely expected interest-rate cut. Despite Seoul’s show of resolve — underscored most recently by a rare meeting between the prime minister and the Bank of Korea governor — the dollar ended its brief decline and turned upward, gaining 1.4 won to 1,470.90 won per dollar. South Korea’s KOSPI is trading 0.6 percent lower at 4,128.6 as of 10 a.m. Foreign investors are selling 183.9 billion won versus retail investors’ net buying of 117.7 billion won and institutional buying of 51.3 billion won. Blue-chip names are under pressure. Samsung Electronics is down 0.65 percent at 108,800 won, a relatively mild decline thanks to rising prices in legacy semiconductors, particularly conventional DRAMs. SK hynix, more exposed to external sentiment given its concentration in high-value chips such as HBM, is trading 2.25 percent lower at 564,000 won. LG Energy Solution, which jumped the previous day after securing a 2 trillion won electric-vehicle battery deal, is 2 percent lower at 442,000 won. Rival Samsung SDI is down 1.59 percent at 309,000 won. Among the day’s gainers is HD Hyundai Heavy Industries, rising 6.45 percent to 579,000 won, buoyed by news of its planned shipyard project in India’s Tamil Nadu region and expectations that it could gain an edge in the Korea Destroyer Next-Generation (KDDX) program. Japan’s Nikkei 225 is little changed at 50,532.07, stabilizing as U.S. semiconductor stocks rose overnight. Nvidia partner Ibiden is 3.4 percent higher at 13,175 yen (84.51 dollars), while Tokyo Electron is up 1.36 percent at 33,700 yen. But the yen carry-trade pressure persists: Mitsubishi Estate is down 2.4 percent at 3,728 yen, and Tokyu Fudosan Holdings is down 2.45 percent at 1,416 yen. Taiwan’s TAIEX is 0.3 percent lower at 28,210. TSMC is down 0.3 percent at 1,490 Taiwan dollars (47.75 dollars) on profit-taking, and MediaTek is 0.35 percent lower at 1,435 Taiwan dollars. On the mainland, the Shanghai Composite Index is steady at 3,920, while the Shenzhen Component is 0.3 percent lower at 13,291. Hong Kong’s Hang Seng Index is trading 0.2 percent lower at 25,702. 2025-12-09 11:32:42
  • Asian markets reserved in FOMC week, Japan GDP disappoints
    Asian markets reserved in FOMC week, Japan GDP disappoints SEOUL, December 08 (AJP) - Cautious mood overwhelmed the Asian market opening for the week as investors awaited the rate move and direction signal from the U.S. Federal Open Market Committee (FOMC) meeting later this week. South Korea's KOSPI is trading at 4,103 as of 11:00 a.m. Monday, unchanged from the end of last week. Foreign investors, selling 278.7 billion won ($189 million), and institutions, selling 124.5 billion won, are driving the weakness. Retail investors are buying 399.1 billion won, looking for opportunities. The dollar dropped below 1,470 won, driven by customary year-end dollar-selling for book-closing. Samsung Electronics rose 0.8 percent to 109,400 won on expectations for the chipmaker to retake the No. 1 position in the DRAM market, given the bigger margin of rise in legacy chips. SK hynix slipped 1.29 percent to 537,000 won as its HBM-focused portfolio gives it less room to benefit from the mass-market DRAM upturn. Nuclear power-related stocks are struggling. Doosan Enerbility is trading 4.3 percent lower at 77,000 won, and Korea Electric Power (KEPCO) is 2.1 percent lower at 51,100 won, driven by a combination of factors — the government’s earlier statement prioritizing renewable energy over nuclear power, and the view that the power efficiency of TPUs is up to four times better than GPUs. Some companies are benefiting from favorable news. LG Energy Solution, the No. 1 secondary battery company, is trading 3.2 percent higher at 440,000 won, following news of a $1.4 billion electric-vehicle battery supply contract with Mercedes-Benz. The KOSDAQ is 0.17 percent higher at 923. Its market capitalization briefly surpassed 500 trillion won in early trading before receding to the high-400 trillion-won range. Alteogen, the top market-cap biotech firm, is trading 2.2 percent higher at 466,500 won, reflecting expectations that its business momentum will improve after its decision to transfer its listing from the KOSDAQ to the KOSPI. Japan’s Nikkei 225 is trading 0.3 percent lower at 50,338. Japanese GDP contracted 0.6% sequentially in the third quarter, worse than market expectations of a 0.4% contraction. The market is showing a mixture of anxiety about recession and hope that Prime Minister Sanae Takaichi’s cabinet will implement stronger stimulus measures. Toyota rose 0.59 percent to 3,050 yen and Nissan gained 2 percent to 378 yen, while semiconductor names weakened across the board with Advantest down 1.8 percent to 19,845 yen and Tokyo Electron down 1.35 percent to 32,690 yen. Taiwan’s TAIEX is trading 0.45 percent higher at 28,106. TSMC is leading the rally, trading 1.03 percent higher at NT$1,475, while MediaTek is 1.4 percent lower at NT$1,410, limiting overall gains. Chinese markets show mixed results. The Shanghai Composite Index is trading 0.15 percent higher at 3,908, and the Shenzhen Component is 0.36 percent higher at 13,194, helped by expectations of central bank stimulus. In contrast, Hong Kong’s Hang Seng Index — more sensitive to global investment flows — is 0.35 percent lower at 25,995, weighed by the FOMC uncertainty and Japan’s GDP data. 2025-12-08 11:56:35
  • Asian stocks mostly gain while Nikkei slips on interest rate concerns
    Asian stocks mostly gain while Nikkei slips on interest rate concerns SEOUL, December 5 (AJP) - Asian stock markets closed mixed on Friday, with most bourses, including South Korea's, posting gains, while Japan slipped amid uncertainty over its benchmark interest rate. In Seoul, the benchmark KOSPI closed at 4,096.13, up 1.68 percentage points from the previous session. Foreign investors buoyed the market with net purchases of stocks worth 770.7 billion Korean won ($524 million). The inflow appears to be driven by investors seeking other opportunities amid rising uncertainty over Japan's monetary policy. Institutions led the rally with net purchases of 1.2 trillion won, while retail investors took profits by selling 1.94 trillion won. The won strengthened against the greenback, trading at 1,470, lifted by foreign capital inflows into the market. The hottest stock on the KOSPI was Hyundai Motor, which surged a whopping 11.11 percent to 315,000 won, recording a new high. The surge appears to reflect relief over a 15-percent tariff being retroactively applied after Seoul and Washington finalized their trade talks, along with expectations of accelerated development of in-house autonomous driving technologies. LG Electronics also continued its upward trend, closing 5.17 percent higher at 99,700 won, reflecting strong investor confidence in its next-generation growth strategies including its Software-Defined Vehicle (SDV) initiative and automotive electronics business. Samsung Electronics closed 3.14 percent higher at 108,400 won, approaching the 110,000-won mark, while SK hynix edged up just 0.37 percent to 544,000 won. The junior KOSDAQ, after briefly surpassing 5 trillion won in mid-day trading on hopes for Seoul's market stimulus, instead closed 0.55 percent lower at 924.74. Japan's Nikkei 225 fell 1.03 percent to 50,503, pressured by Bank of Japan Governor Kazuo Ueda's comments the previous day hinting at a cautious approach to raising interest rates. Major stocks fell across the board, with Toyota dropping 2.71 percent to 3,019 yen ($19.53) and Sony sliding 2.24 percent to 4,320 yen. Chip-related stocks mostly declined, with Advantest falling 2.22 percent to 20,235 yen and Tokyo Electron dropping 2.54 percent to 32,960 yen. But semiconductor circuit board maker Ibiden surged 6.77 percent to 12,695 yen. Taiwan's TAIEX closed 0.67 percent higher at 27,980.89. TSMC performed well, closing 1.04 percent higher at 1,460 Taiwan dollars ($46.68). MediaTek also closed 1.42 percent higher at 1,425 Taiwan dollars. With the Shanghai Composite Index trading 0.66 percent higher at 3,900 as the end of trading, Chinese markets rallied on expectations of economic stimulus measures, supported by selective buying in technology stocks. Chinese markets rallied on stimulus expectations and selective tech stock buying, with the Shanghai Composite Index closing about 0.66 percent higher at 3,900. The SZSE Component rose 0.98 percent to close at 13,133 and CATL also gained 1.48 percent to finish at 389 yuan ($55.01). In Hong Kong, the Hang Seng Index gained 0.47 percent to 26,059, with Xiaomi climbing 2 percent to HK$42.82 ($5.50) amid strong buying in the tech sector. 2025-12-05 16:56:36
  • Koreas C/V surplus halves, outbound stock invest outsized inbound by a factor of 6
    Korea's C/V surplus halves, outbound stock invest outsized inbound by a factor of 6 SEOUL, December 05 (AJP) - South Korea posted its 30th straight monthly current account surplus in October, but the headline figure shrank to a six-month low as reduced factory activity during the Chuseok holiday dampened trade, according the central bank data, which also showed Korean outbound stock purchases overwhelming foreign inflows by a factor of six to explain the stubbornly weak Korean won against the U.S. dollar. The Bank of Korea said Friday that the country recorded a $6.81 billion current account surplus in October, down sharply from $13.47 billion in September and from $9.4 billion a year earlier. Korea’s September–October trade patterns typically hinge on the timing of the Chuseok holiday, with exports front-loaded ahead of factory shutdowns. Even with the pullback, the cumulative surplus for the first 10 months reached a record $89.58 billion—17 percent higher than a year earlier—putting Seoul on track to hit the $115 billion milestone for 2025. The services account logged a $3.75 billion deficit despite a record influx of inbound tourists. The travel balance swung deeper into the red, widening to $1.36 billion from $910 million in September, as a stronger dollar inflated Koreans’ overseas spending. The goods account recorded a surplus of $7.82 billion, half of September’s $14.24 billion. The Bank of Korea said the drop largely reflected the normalization of consumption tax flows, which had surged ahead of the Chuseok holiday. Customs-cleared exports rose 3.5 percent on year to $59.5 billion. Semiconductor shipments jumped 25.2 percent to $15.86 billion, while vessel exports soared 135.8 percent to $4.62 billion. Petroleum products also posted an 11.7 percent gain to $3.84 billion, despite intensifying low-cost competition from China. The primary income account booked a $2.94 billion surplus, buoyed by Koreans’ growing investment income overseas. Dividend income alone reached $2.29 billion, underscoring heavy equity allocations abroad. In the financial account, net assets increased by $6.81 billion as outbound investment continued to dominate. Direct overseas investment totaled $1.88 billion, far outpacing the $150 million that foreigners invested in Korea. Korean nationals’ overseas equity purchases surged to $18 billion in October—more than double September’s $8.5 billion and six times the $2.93 billion foreign investors deployed into Korean stocks. Reserve assets rose by $6.67 billion, up from $4 billion in September, suggesting stepped-up efforts by authorities to counter won weakness after the currency moved past 1,450 per dollar and continued south in October. As of 9:30 a.m. Friday, the won was trading at 1,474 per dollar. 2025-12-05 11:28:45