May 16, 2021

Fear of the resurgence of China-US tension knocks down the Seoul Stock Exchange

Fear of the resurgence of China-US tension knocks down the Seoul Stock Exchange

The Seoul Stock Exchange fell on Thursday amid fears of an upsurge in trade tensions between China and the US following the arrest of a Huawei-based executive accused by Washington of violating embargoes on Iran, according to local analysts.

The Kospi indicator of the South Korean market closed today with a decline of 32.62 points, a 1.55 percent, to stand at 2,068.69 integers.

The Kospi technology index lost 22.74 points, 3.24%, to 678.38 whole.

Investors have been short of the relief caused by the US-China truce decreed in the framework of the G20 in Buenos Aires after the arrest of Wanzhou Meng, Huawei's financial director.

Meng, daughter of the founder of the Chinese technological giant, was arrested in Canada last Saturday after Washington requested his extradition for alleged violation of US sanctions on Iran, which has already provoked an angry reaction from Beijing, which has demanded his release immediate

Foreign investors were again net sellers today, especially with metallurgical, chemical and technological primers.

Samsung Electronics, benchmark in Seoul, fell 2.29%; Posco, the largest South Korean steelmaker, lost 0.4% and the leading chemical company in the Asian country, LG Chem, depreciated 0.28%.

Among the few that prospered in today's bad day is South Korea's leading vehicle manufacturer, Hyundai Motor, which climbed 2.79%.

The local currency, the won, lost 6.2 units against the dollar today, which was bought at 1,120.3 won at the end of operations.


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