FX.co ★ South Korean Shares Track Wall Street Lower

On Monday, the KOSPI index decreased by 0.4% to settle at 2,616 points, mirroring the downturn experienced on Wall Street the previous Friday. This decline was fueled by apprehensions regarding the uncertainty of U.S. economic strategies, heightened by Moody’s decision to lower the United States' prestigious triple-A credit rating to Aa1. The rating agency cited escalating costs associated with entitlement programs, rising interest expenditures, and persistent political stalemates as significant threats to the country's long-term debt stability. Additionally, investors maintained a close watch on the evolving discussions surrounding the US–South Korea tariff negotiations. In the corporate sector, technology stocks faced substantial declines. Samsung Electronics saw a 1.1% drop, and SK Hynix fell by 2.2%. The automotive sector also experienced pressures, as Hyundai Motor's shares decreased by 1.6% and Kia Corp's by 1%. However, battery manufacturers exhibited stronger performance. LG Energy Solution increased by 1.4%, and Samsung SDI advanced by 2.2% after reducing its new shares' pricing by 17% amidst recent tariff-induced market fluctuations.