Journalist

Kim Yeon-jae
  • Nikkei soars, KOSDAQ active with robotics helped by Trumps mention
    Nikkei soars, KOSDAQ active with robotics helped by Trump's mention SEOUL, December 04 (AJP) - Japanese stocks defied concerns over a potential unwinding of the yen carry trade to push back above the 50,000-point threshold, while activity was subdued across most of Asia. South Korea’s KOSPI closed 0.19 percent lower at 4,028.51 on Thursday. After sliding more than 1 percent in early trading, the index pared losses in the afternoon as foreigners took profits and nearly all U.S. megacap tech stocks—excluding AMD—declined overnight. Foreign investors drove the weakness, net selling 696.5 billion won ($472.5 million). Retail investors net bought 560.8 billion won, and institutions purchased 131.7 billion won, positioning for the next upswing. The KOSDAQ slipped 0.23 percent to 929.83, though its market cap is nearing the 500-trillion-won milestone amid expectations of government support measures for the secondary market. The won continued to weaken, losing 3 won to 1,470 per dollar as of 5:10 p.m., pressured by foreign outflows following heavy stock sales during the session. Bond yields were mixed. The three-year government bond yield fell 1.6 basis points to 3.025 percent but remained above 3 percent. The 10-year yield edged up 0.8 basis points to 3.376 percent. Samsung Electronics rose 0.57 percent to 105,100 won after securing a contract to supply HBM4 memory for Google’s next-generation TPU production starting in 2026. SK hynix fell 1.81 percent to 542,000 won, weighed down by weak earnings at Kioxia, the Japanese NAND maker it has invested in, and softer AI-related demand from its key customer Microsoft. Losses on the main bourse were softened by a sudden rally in robotics stocks, which surged on rumors that U.S. President Donald Trump may sign an executive order promoting the robotics industry. Hyundai AutoEver jumped 27.19 percent to 283,000 won. Hyundai Motor—the parent of AutoEver and Boston Dynamics—climbed 6.38 percent to 283,500 won. Doosan Robotics rose 7.82 percent to 82,700 won. LG Electronics also gained, closing 5.92 percent higher at 94,800 won, supported by optimism around its automotive electronics and software-defined vehicle businesses. The KOSDAQ likewise avoided a steeper decline thanks to robotics-linked names. Rainbow Robotics, in which Samsung Electronics is the largest shareholder, rose 6.3 percent to 472,500 won on the Washington headlines. Japan’s Nikkei 225 closed 2.33 percent higher at 51,028.42, logging the largest gain among major Asian indices. Export-heavy automakers advanced on expectations of a U.S. Federal Reserve rate cut. Toyota added 3.26 percent to 3,103 yen ($20), while Honda rose 2.93 percent to 1,548 yen. Robot makers also rallied sharply, with Fanuc soaring 12.98 percent to 5,953 yen and Yaskawa Electric jumping 11.37 percent to 4,769 yen. Taiwan’s TAIEX closed at 27,795.71, unchanged from the previous session. Chinese markets ended mixed. The Shanghai Composite finished flat at 3,875.79 amid lingering recession concerns, while the Shenzhen Component rose 0.4 percent to 13,006.72. Battery giant CATL climbed 1.93 percent to 383.35 yuan ($54.27), leading gains. Hong Kong’s Hang Seng Index ended 0.68 percent higher at 25,935.90, with Xiaomi up 4.33 percent at 41.96 Hong Kong dollars ($5.39). 2025-12-04 17:25:27
  • Major Asian markets climb; China slips on deepening recession fears
    Major Asian markets climb; China slips on deepening recession fears SEOUL, December 03 (AJP) - Asian equity markets ended mixed on Wednesday, with South Korea, Japan and Taiwan advancing on rising expectations of a U.S. interest rate cut, while China-related indices slid across the board amid renewed recession worries. The Korean won closed at 1,467.8 per dollar, up 1.7 won, supported by sustained foreign and institutional buying on the KOSPI and what traders described as “steady, visible intervention” by financial institutions and FX authorities. Government bond yields rose broadly, with the three-year sovereign yield finishing 1.9 basis points higher at 3.041 percent in the afternoon session. South Korea’s benchmark KOSPI climbed 1.04 percent to 4,036.30, reclaiming the 4,000-point threshold as a two-day rally gained traction. Institutions led the gains with 756.5 billion won ($515 million) in net purchases, followed by foreign investors who bought a net 159 billion won. Retail investors took profits, selling 898.7 billion won. Market leaders were mixed. Samsung Electronics rose 1.06 percent to 104,500 won, extending gains for a second day. SK hynix slipped 1.08 percent to 552,000 won after its Japanese NAND affiliate Kioxia posted weaker-than-expected earnings. Samsung C&T closed 9.35 percent higher at 245,500 won following news that Hong Ra-hee, former director of the Leeum Museum of Art, completely gifted her entire stake in the company to her son and Samsung Group Chairman Lee Jae-yong. Hong's decision raised expectations that Chairman Lee's management control defense line would be significantly strengthened, leading the Samsung Group to pursue a more consistent strategy. Nuclear-energy names also spiked after U.S. Commerce Secretary Howard Lutnick said Washington would prioritize nuclear plant projects funded jointly with Korea and Japan. Hyundai Engineering & Construction jumped 6.98 percent to 70,500 won, while Doosan Enerbility rose 4.53 percent to 78,400 won. Theme stocks related to the Seoul Express Bus Terminal redevelopment surged after the Seoul Metropolitan Government selected the developer for the project. Chunil Express, the second largest shareholder of the terminal, surged 29.97 percent to 399,000 won, and Shinsegae, the selected developer, closed 4.19 percent higher at 248,500 won. Chunil Express, however, has been designated as an investment warning stock after seeing an extraordinary surge of over 700 percent since November 18, despite the official start of the development project being yet to commence. Japan’s Nikkei 225 rose 1.14 percent to 49,864.68, led by semiconductor-related names. Advantest soared 5.3 percent to 20,860 yen ($134.13), and Tokyo Electron gained 4.73 percent to 32,780 yen. Kioxia Holdings slid 2.24 percent to 9,011 yen on disappointing earnings. Export-heavy autos fell as a BOJ rate hike appeared increasingly probable, with Toyota down 1.31 percent at 3,005 yen and Honda off 0.76 percent at 1,504 yen. Taiwan’s TAIEX gained 0.83 percent to 27,793.04 after signals of a nearing U.S. rate cut buoyed risk sentiment. TSMC, which represents more than 40 percent of the market, climbed 1.4 percent to 1,450 Taiwan dollars ($46.32). MediaTek fell 1.06 percent to 1,400 Taiwan dollars as profit-taking continued for a second day. Chinese markets weakened uniformly. The latest manufacturing PMI contracted for an eighth straight month, reinforcing concerns that China remains trapped in recessionary conditions. The Shanghai Composite Index fell 0.51 percent to 3,878, while the Shenzhen Component slipped 0.78 percent to 12,955.25. Hong Kong’s Hang Seng Index traded 1.23 percent lower at 25,773 as of 4:30 p.m. 2025-12-03 16:53:49
  • Koreas GDP fared better than expected in Q3, nominal GNI falls on sharp won weakening
    Korea's GDP fared better than expected in Q3, nominal GNI falls on sharp won weakening SEOUL, December 03 (AJP) - South Korea's economy grew faster than earlier estimated on the back of stronger capital investment, but its nominal income declined against a strong dollar, reflecting the Korean won’s status as one of the weakest performers among major traders. According to the Bank of Korea (BOK) on Wednesday, real gross domestic product increased 1.3 percent from the previous quarter — the strongest since the fourth quarter of 2021 — accelerating from the 0.7 percent gain in the second quarter and 1.2 percent in preliminary data. Against a year-ago period, real GDP expanded 1.8 percent, setting the economy on track to meet this year's revised annual growth target of 1.0 percent. The economy added 1.6 percent in the second quarter and zero growth in the first. The upward revision owed to increases in construction investment (0.6 percent), facilities investment (2.6 percent), and intellectual property investment (1.2 percent), the BOK said. Other data on the domestic front also showed improvements. Private consumption grew 1.3 percent, driven by gains in both goods, such as passenger cars, and services, such as dining out. Government expenditure increased by 1.3 percent, centered on the cost of goods and health insurance benefits. The external environment, however, turned dim. Exports expanded 2.1 percent, slowing from the 4.5 percent growth in the second quarter, while imports also slowed to 2.0 percent from 4.2 percent in the second quarter. In nominal terms, GDP added just 0.7 percent, compared to 2 percent in the second quarter, placing gross operating surplus growth at 0.8 percent versus 4 percent previously, due to the strength of the dollar against the Korean won, which fell around 6 percent in the third quarter. The GDP deflator, which reflects the level of prices, rose by 2.7 percent. The gross national income (GNI) in nominal terms decreased 0.3 percent from the previous quarter. The fall was significantly impacted by the shrinkage in net factor income from the rest of the world (NFIA) — the difference between the country’s earnings from foreign investments and payments made to foreign investors — which fell from 14.1 trillion won ($9.6 billion) to 8 trillion won. In real terms, GNI rose 0.8 percent from the previous quarter, marking a slight slowdown from the 1 percent increase recorded in the second quarter. The deterioration in the terms of trade also contributed to sluggish GNI, with the real loss on terms of trade widening from 8.6 trillion won ($5.86 billion) to 10.3 trillion won. Real net factor income from the rest of the world also added downward pressure, declining from 10.2 trillion won in the second quarter to 8.6 trillion won in the third quarter. Gross national income fell 0.1 percent. Both the savings rate and the investment rate declined, painting a darker picture for the economy moving forward. The gross saving ratio fell 1.2 percentage points to 34.4 percent, while the net household saving ratio inched up 0.1 percentage point to 8.9 percent. The gross national investment ratio also fell 0.2 percentage point sequentially to 28.6 percent. 2025-12-03 11:47:37
  • Asian markets mixed on yen carry trade fears as KOSPI outperforms
    Asian markets mixed on yen carry trade fears as KOSPI outperforms SEOUL, December 02 (AJP) - Asian equity markets were mixed on Tuesday as investors weighed the growing risk of a yen carry trade unwind sparked by rising expectations of a Bank of Japan interest rate hike. Korea’s KOSPI stood out as the region’s strongest performer, drawing sizable foreign inflows even as most other Asian benchmarks stalled or slipped. The Korean won strengthened slightly to 1,468.9 per dollar, up 2 won from the previous session, supported by foreign capital moving into Seoul’s markets and a renewed push by financial authorities urging exporters and institutions to convert dollar earnings into won. Still, analysts noted that Korea’s M2 money supply growth remains higher than in other major economies, suggesting that currency stabilization will require more time and potentially further policy measures. The KOSPI jumped 1.9 percent to 3,994.93, briefly approaching the psychologically significant 4,000 line as investors repositioned amid heightened volatility in Japan. Monday’s trade data, which showed a surplus, added momentum. Foreign investors bought 1.21 trillion won ($800 million) in Korean equities, while institutions purchased 393 billion won. Retail investors sold 1.58 trillion won, locking in recent gains. Large-cap technology stocks led the advance. SK hynix climbed 3.72 percent to 558,000 won, reclaiming the 550,000-won level for the first time in weeks. Samsung Electronics added 2.58 percent to 103,400 won, consolidating its hold above the symbolic “100,000-Electronics” threshold. Carmakers, which had slumped the previous day, rebounded sharply: Hyundai Motor rose 4.52 percent to 266,000 won and Kia gained 4.19 percent to 117,000 won. Shipping stocks also surged following the latest trade data, with Pan Ocean up 11.17 percent, Korea Line rising 9.04 percent, and Hyundai Glovis climbing 3.93 percent. Japan’s Nikkei 225 ended largely flat at 49,303.45, giving back early gains as BOJ tightening expectations solidified. Financial stocks climbed on the prospect of higher rates, with Mitsubishi UFJ Financial Group up 2.46 percent. But analysts cautioned that a full-scale unwind of yen-funded carry positions could trigger broader market stress. Japanese industrial and robotics names were notable gainers. Fanuc rose 6.51 percent, and Yaskawa Electric advanced 4.67 percent, reflecting optimism that the export downturn may be bottoming and capital expenditure could soon pick up. Exporters that had benefited from yen weakness, including Toyota, retreated, with the automaker falling 1.2 percent. Taiwan’s TAIEX mirrored Korea’s strength, closing 0.81 percent higher at 27,564.27, led by TSMC, which gained 1.42 percent. MediaTek, after a sharp rally in recent days, slipped 2.08 percent on valuation concerns. Mainland Chinese markets remained among the region’s weakest as investors assessed the potential impact of a BOJ rate hike on regional liquidity. The Shanghai Composite fell 0.42 percent to 3,897.71, and the SZSE Component declined 0.68 percent to 13,056.70. Hong Kong’s Hang Seng Index, which touched 26,264 earlier in the day, pared gains to trade 0.14 percent higher at 26,067 as of 4:40 p.m. 2025-12-02 17:06:45
  • South Koreas daily inflation nears 3% in November on steep won weakening
    South Korea's daily inflation nears 3% in November on steep won weakening SEOUL, December 02 (AJP) - South Korea’s inflationary pressure strengthened in November, with daily living costs hovering near 3 percent as a sharply weaker won pushed up fuel and import prices while discouraging overseas travel and spending, government data showed Tuesday. According to the consumer price index (CPI) released by the Ministry of Data and Statistics, headline inflation rose 2.4 percent from a year earlier, matching October’s on-year gain. Fuel prices jumped 5.9 percent on year and 3.5 percent on month, reflecting the dollar-won exchange rate lingering at crisis-level territory. The dollar climbed as high as 1,475.2 won last month — nearly 7 percent higher than two months earlier. Diesel prices rose 10.4 percent and gasoline gained 5.3 percent. Although Dubai crude fell about 4.5 percent — from $66.2 per barrel in late October to $63.2 in late November — domestic petroleum prices nevertheless increased to 1,718.1 won per liter from 1,663.2 won a month earlier due to the weaker won and the gradual phase-out of fuel-tax cuts. Processed food prices rose 3.3 percent on higher import-input costs, while prices of agricultural, livestock and fishery goods surged 5.6 percent on poor weather conditions. Core inflation, which excludes food and energy, eased to 2.0 percent from 2.2 percent in October as service-sector prices softened on weakening demand. Housing rents — including jeonse lump-sum leases and monthly rentals — continued their upward trajectory, rising 0.9 percent on year. The Cost of Living Index (CLI), which tracks 144 frequently purchased items, accelerated to a 2.9 percent on-year increase from 2.5 percent in October. Expected inflation for the next 12 months remained in the mid-2 percent range. Following the release, the Bank of Korea said it was monitoring price trends “with vigilance,” noting that overall inflation has stayed in the mid-2 percent range for a second consecutive month while daily living costs have spiked. In the bond market, the 3-year Treasury yield closed the early Tuesday session 2.0 basis points lower at 3.025 percent, while the 10-year yield slipped 1.4 basis points to 3.373 percent. The central bank kept its policy rate unchanged at 2.5 percent at its final meeting of the year on Nov. 27, citing a policy bind created by foreign-exchange volatility and housing-market vulnerabilities. 2025-12-02 16:23:28
  • Asian markets mixed as China rallies; Korea, Japan slip on policy concerns
    Asian markets mixed as China rallies; Korea, Japan slip on policy concerns SEOUL, December 01 (AJP) - Asian equities were mixed on Monday morning, with declines in South Korea, Japan and Taiwan contrasting with broad gains in China. South Korea’s benchmark KOSPI slipped 0.35 percent to 3,911 as of 10 a.m., pressured by institutional selling. Institutions offloaded 132.1 billion won ($90 million), while foreign investors sold a modest 4 billion won as they monitored market direction. Retail investors bought 162.1 billion won, seeking to take advantage of the dip. Shares of heavyweight chipmakers were steady. Samsung Electronics rose 0.1 percent to 100,600 won, while SK hynix edged up 0.28 percent to 531,500 won. Power equipment makers slumped sharply on concerns that North American shipments have peaked and margins are topping out. HD Hyundai Electric fell 4.65 percent to 739,000 won, while Hyosung Heavy Industries tumbled 5.94 percent to 1,789,000 won. Auto stocks also weakened, with Hyundai Motor sliding 2.49 percent to 255,000 won amid continued foreign selling as investors reassess risks tied to potential U.S. tariffs of up to 15%. Shipping names advanced after November export data showed an 8.4 percent year-on-year rise to a record high. HMM gained 4.5 percent to 20,000 won, and Pan Ocean climbed 4 percent to 3,920 won. The tech-heavy KOSDAQ reversed course on expectations of fresh government support, rising 1.6 percent to 930. Cybersecurity stocks rallied across the board after a series of high-profile breaches, including the exposure of 30 million customer records at e-commerce giant Coupang. Softcamp surged by the daily limit, jumping 30 percent to 1,682 won. AhnLab rose 2.3 percent to 61,600 won, while ESTsoft added 3.9 percent to 19,140 won. In Japan, the Nikkei 225 dropped 1.6 percent to 49,450 as traders weighed the possibility that the Bank of Japan could freeze or raise rates at its upcoming policy meeting — moves that could delay fiscal stimulus proposed by Prime Minister Sanae Takaichi’s Cabinet. Banking stocks firmed on expectations of higher interest rates. Chiba Bank climbed 1.92 percent to 1,676 yen ($10.8), while Shizuoka Financial Group advanced 1.6 percent to 2,300 yen. Major exporters weakened, with Toyota down 1.1 percent to 3,099 yen and Sony sliding 2.7 percent to 4,452 yen. Chip and technology suppliers continued to face pressure. Testing equipment maker Advantest plunged 4.6 percent to 19,620 yen, while Ibiden dropped 2 percent to 11,640 yen. Taiwan’s TAIEX traded 0.3 percent lower at 27,550. TSMC slipped 0.7 percent to 1,430 Taiwan dollars ($45.5), and Hon Hai Precision fell 1.1 percent to 223 Taiwan dollars. MediaTek bucked the trend, rising 3.6 percent to 1,445 Taiwan dollars on optimism over its expanded AI partnership with Alphabet and stronger-than-expected demand for its Dimensity 9500 smartphone chips. Mainland Chinese markets advanced across the board. The Shanghai Composite Index rose 0.41 percent to 3,904, while the Shenzhen Component gained 0.85 percent to 13,085. Investor expectations for additional stimulus grew amid signs of prolonged economic weakness, including the decision by major developer Vanke Group to seek extensions on maturing bonds and the yield on Chinese Treasury bonds falling below that of Japan for the first time. Hong Kong’s Hang Seng Index climbed 1.13 percent to 26,150, rebounding from sentiment pressure following last week’s deadly incident in Tai Po and supported by optimism over China’s expected economic measures. 2025-12-01 11:13:27
  • Asian markets mostly gain, but Seoul tumbles on foreign sell-off
    Asian markets mostly gain, but Seoul tumbles on foreign sell-off SEOUL, November 28 (AJP) - Asian equities ended mostly higher on Friday, with the notable exception of South Korea’s KOSPI, which slumped sharply amid renewed currency volatility and recession concerns. The Korean won weakened to 1,471.8 per dollar, up 8.8 won as of 5 p.m., with traders saying recent verbal intervention by authorities has done little to stabilize the currency. Bond yields eased after an early climb. The three-year government yield, which touched a morning peak of 3.08 percent — up 6.7 basis points — slipped to 2.99 percent by the close. South Korea’s benchmark KOSPI fell 1.51 percent to 3,926.59, the only major Asian index to post a drop of more than 1 percent. Foreign investors were the main sellers, offloading 2.06 trillion won ($1.4 billion). Analysts said the weak won and limited impact of FX intervention weighed on sentiment. A batch of softer-than-expected industrial activity data released earlier in the day also stoked concerns about a looming economic slowdown. Capital outflows from the KOSPI coincided with inflows into the tech-heavy KOSDAQ, where expectations of government stimulus measures pushed the index 3.71 percent higher to 912.67. Foreigners and institutions contributed net inflows of 488 billion won and 602.6 billion won, respectively. Blue chips dragged on the main board. Samsung Electronics slipped 2.9 percent to 100,500 won, while SK hynix lost 2.57 percent to 530,000 won. LG Energy Solution was the weakest among major stocks, plunging 6.85 percent to 408,000 won. By contrast, KOSDAQ shares surged, led by robotics plays. Rainbow Robotics jumped 13.43 percent to 435,000 won, and Yujin Robot gained 5.08 percent to 12,200 won. Elsewhere in Asia, Japan’s Nikkei 225 edged up 0.17 percent to 50,253.91. Toyota Motor was little changed at 3,133 yen ($20), down 0.16 percent, as persistent doubts over its electric-vehicle strategy offset solid hybrid sales. Energy and telecom stocks in Tokyo posted small gains, with wire and fiber-optic maker Furukawa Electric rising 4.73 percent. Chip stocks were mixed. Advantest climbed 0.81 percent while Tokyo Electron fell 1.18 percent. Taiwan’s TAIEX added 0.26 percent to 27,626.48. TSMC inched up 0.35 percent to NT$1,440 ($45.86), while MediaTek advanced 4.1 percent to NT$1,395. Mainland Chinese markets ended higher — the SZSE Component up 0.85 percent and the Shanghai Composite up 0.34 percent. Hong Kong’s Hang Seng Index slipped 0.2 percent to 25,895.20, pressured by cautious sentiment following a deadly apartment fire. 2025-11-28 17:28:28
  • Economy/Business Calendar
    Economy/Business Calendar Seoul, November 28 (AJP) - Dec 1 (Mon) ISM Manufacturing (Nov) - U.S. NBS/Caixin PMIs (Nov) - China Dec 3 (Wed) GNI (3Q) - Ministry of Data and Stats ADP, ISM Services - U.S. Dec 5 (Fri) BoP (Oct) - Bank of Korea Industrial Loans (Q3) 2025 - Bank of Korea Jobs Report (Nov) - U.S. Dec 9-10 (Tue-Wed) FOMC meeting - U.S. Export/Import price indexes (Nov) - Bank of Korea Dec 15-18 (Mon-Thu) Trade, CPI/PPI (Nov) - China Dec 16 (Tue) Combined Oct–Nov Employment - U.S. Monetary Aggregates (Oct) - Bank of Korea Dec 18 (Thu) US CPI (Nov) - U.S. CPI (Nov) - Japan Dec 19 (Fri) PPI (Nov) - Bank of Korea Dec 23 (Tue) GDP 3Q (final), consumer confidence - U.S. Dec 24 (Wed) CSI (Dec) - Bank of Korea NYSE/Nasdaq early close - U.S. Dec 25 (Thu) Christmas Closures - KR/US/HK Holiday Dec 29-30 (Mon-Tue) Nov Industrial output Dec 31 (Wed) CPI (Dec, Annual) - Ministry of Data and Statistics KRX/TSE Closed - KR/JP Holiday 2025-11-28 17:27:04
  • Asian shares mostly positive; Korean won rebounds as debt yields jump on BOK warning
    Asian shares mostly positive; Korean won rebounds as debt yields jump on BOK warning SEOUL, November 27 (AJP) - Asian equity markets extended gains Thursday, led by tech stocks benefiting from Google’s dual breakthroughs in AI chips and the Gemini 3.0 model. In Korea, the won strengthened sharply while government bond prices slumped after the Bank of Korea governor struck a hawkish tone on FX risks and inflation after keeping the base rate at 2.50 percent in the final policy meeting of the year. The 3-year yield jumped 11.8 basis points to 3.013 percent and the 10-year rose 10 basis points to 3.351 percent. The dollar fell 8.40 won to 1,462.10 won. The benchmark KOSPI closed 0.66 percent higher at 3,986.91 after briefly retaking the 4,000 mark. Institutional investors—responding to the government’s appeal to shore up the won—net bought 434.3 billion won ($296.4 million). Foreign investors also reversed course, buying a net 149.6 billion won, while retail investors sold 610.2 billion won. All major bellwethers advanced. SK hynix gained 3.82 percent to 544,000 won, recovering recent losses. Samsung Electronics gave up early gains but still closed 0.68 percent higher at 103,500 won. Samsung Epis Holdings jumped 19.7 percent to 434,500 won on expectations of strong growth potential following its spin-off to focus on new drug and biosimilar businesses. Some stocks lagged. Hanwha Ocean fell 2.99 percent to 110,500 won after signs of a possible end to the Ukraine war and the company’s failure to win a Polish submarine contract. Naver slid 4.55 percent to 251,500 won after a 50 billion won hacking loss at Dunamu, which is set to merge with Naver Financial. The loss darkened prospects for a potential NASDAQ listing. The KOSDAQ edged up 0.31 percent to 880.06, with gains across chip and robotics names. Rainbow Robotics rose 2.68 percent to 383,500 won. Japan’s Nikkei 225 closed 1.23 percent higher at 50,167.10. Chip suppliers led the advance: Advantest rose 4.88 percent to 20,410 yen, while Ibiden gained 5 percent to 11,450 yen. Battery stocks also rallied, with Panasonic up 5.08 percent at 1,934 yen after securing a supply contract with Zoox, Amazon’s autonomous taxi unit. Taiwan’s TAIEX added 0.53 percent to 27,554.53. Market heavyweights were mixed: TSMC slipped 0.35 percent, while MediaTek gained 3.08 percent and Hon Hai rose 1.76 percent, suggesting a rotation away from the TSMC-centric bias. Mainland Chinese markets saw a late-session reversal. The Shanghai Composite closed 0.29 percent higher at 3,875.26, while the SZSE Component fell 0.25 percent to 12,875.20. News that Vanke, China’s largest developer, entered talks to extend bond maturities pressured Shenzhen and Hong Kong markets. Shanghai, meanwhile, drew investors betting on central government stimulus to avert a Vanke-triggered credit shock. Hong Kong’s Hang Seng Index remained flat at 25,941.2, weighed down by profit-taking in tech names—Tencent down 1.45 percent and Alibaba down 2.71 percent—and by cooling consumer sentiment after the deadly Tai Po apartment fire that killed at least 55 people. 2025-11-27 17:10:48
  • BOK holds base rate at 2.50%, bond yields jump as markets price in end of easing
    BOK holds base rate at 2.50%, bond yields jump as markets price in end of easing SEOUL, November 27 (AJP) - The Bank of Korea kept the base rate unchanged at 2.50 percent at its final monetary policy meeting of 2025 on Thursday and signaled that the latest easing cycle may be nearing an end as a persistently weak won fans inflation while simultaneously eroding household purchasing power. Governor Rhee Chang-yong said the decision was “almost unanimous,” with five of the six board members voting for a freeze due to heightened foreign-exchange volatility and unresolved uncertainty in the housing market. One member sought a cut to shore up the fragile economy. Three members also argued the central bank should preserve room for another reduction in three months, depending on how risks evolve. Bond prices fell on the perceived hawkish tilt. The three-year government bond yield rose 5.3 basis points to 2.948 percent, while the five-year gained 4.8 basis points to 3.132 percent. (Bond yields move inverse to prices.) The won strengthened 5.6 won to 1,464.9 per dollar following repeated verbal interventions. The KOSPI slipped back below 4,000 after a brief rebound. Rhee declined to confirm market speculation that the BOK’s easing cycle — which began in October 2024 after rates peaked at 3.50 percent — was effectively over as the market noted the tweaks in the BOK statement after the rate meeting – the replacement of the phrase “easing stance” with the softer “possibility of easing.” “How this is interpreted is up to individuals,” Rhee said. “It is difficult to predict what lies ahead when both upward and downward pressures exist.” The BOK made mild revisions to its growth forecast: raising this year’s projection to 1.0 percent from 0.9 percent and next year’s to 1.8 percent from 1.6 percent. Growth in 2027 is expected to edge slightly above the potential rate of 1.8 percent, at 1.9 percent. Rhee warned of a buildup in inflationary pressure next year due to the weak currency and firmer global oil prices. The won is projected to average above 1,400 per dollar this year — a level unseen even during the Asian Financial Crisis or the Global Financial Crisis. To stabilize the currency, fiscal and monetary authorities have formed an emergency council with the National Pension Service, Korea’s largest holder of dollar-denominated assets, hoping to better manage supply-demand dynamics in the FX market. Rhee called the won’s weakness extraordinary, attributing it to a deep structural tilt toward overseas investments rather than crisis-level stress. He pointed to the stability of Korea’s external borrowing conditions: the five-year credit default swap premium stood at 24 basis points in October, down from 31 in May. “We could send a positive signal to the foreign-exchange and real economy if we halt the easing cycle,” he said, though he emphasized that both monetary and fiscal policy options are limited because the imbalance is structural rather than cyclical. “That the won remains weak despite the narrowing Korea-U.S. rate gap suggests the core issue lies in the imbalance between domestic and overseas investment flows,” he added. Rhee rejected claims that the NPS is being pressured to defend the currency, arguing that an excessively weak won already erodes returns from the fund’s overseas portfolio — ultimately undermining retirement assets. 2025-11-27 13:56:22