FX.co ★ South Korean Shares Fall Ahead of Trump's Asia Meetings

On Tuesday, the KOSPI index dropped by 1.0% to approximately 4,002, pulling back from its previous record high. This decline occurred as investors adopted a cautious stance in anticipation of crucial diplomatic meetings involving US President Donald Trump during his visit to Asia. Market participants were keenly awaiting the results of Trump's discussions with Japan's Prime Minister Sanae Takaichi and China's President Xi Jinping later in the week. These conversations were particularly significant amid speculation about potential adjustments in trade policies and tariffs. The prevailing cautious atmosphere prompted investors to secure profits from key exporters and tech companies, even though Wall Street had reached new record levels the previous night. Additionally, the index was pressured by declines in shipbuilding and defense stocks, following China's imposition of sanctions on five US subsidiaries of Hanwha Ocean. This move fueled concerns regarding possible delays in the company's involvement in the MASGA shipbuilding project and broader disruptions in the supply chain. As a result, Hanwha Ocean shares plummeted by 5.9%, with HD Hyundai Heavy Industries shedding 4.0%, and notable losses observed in Samsung Electronics (-2.7%) and SK Hynix (-3.0%).