FX.co ★ South Korean Shares Reverse Gains on Renewed Trade Tensions

The KOSPI index retreated by 0.63%, settling around 3,561 on Tuesday. This decline reversed earlier gains that had pushed the index to a record high during the session, as fresh US-China trade tensions negatively impacted investor confidence. The downturn occurred following China's sanctions against five US divisions of South Korea's Hanwha Ocean, a response to the US investigation into China's dominance in the shipbuilding industry. Concerns have arisen that South Korea could become embroiled in the escalating trade conflicts. This development followed President Trump's threat to impose new tariffs on Chinese goods, along with Beijing's decision to increase port fees on US ships and tighten restrictions on mineral exports. These heightened tensions led to reduced risk appetite across Asian markets, triggering profit-taking in leading technology stocks. On the corporate front, Samsung Electronics saw a decline of 1.82%, SK Hynix decreased by 0.84%, and Hanwha Aerospace dropped significantly by 6.04%. This was despite a positive start to the session, when shares rose after Samsung reported unexpectedly strong earnings, marking their highest performance in over three years.