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US-China trade talks to exert influence on Seoul bourse

All News 10:00 December 01, 2018

SEOUL, Dec. 1 (Yonhap) -- U.S.-China trade talks at the Group of 20 summit and going forward will influence South Korean stocks next week, analysts here said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 17.24 points, or 0.82 percent, to 2,096.86 on Friday after rising 2.8 percent in the previous four sessions.

Foreigners and institutions bought local stocks, supporting the main index this past week. Individuals offloaded stocks amid uncertainties about the trade summit between the so-called G-2 economies -- the United States and China -- in Argentina from Nov. 30-Dec. 1.

"Meaningful headway at the talks between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, and perhaps a trade dispute ceasefire, will be a boost for the bourse," Yoo Myoung-gan, an analyst at Mirae Asset Daewoo, said.

On Friday, market bellwether Samsung Electronics Co. fell 3.01 percent to 41,850 won, and No. 2 chipmaker SK hynix Inc. shed 2.66 percent to 69,600 won.

The trade summit follows the tit-for-tat imposition of tariffs between the G-2 this year. The U.S. slapped additional duties on $250 billion worth of Chinese goods, and China responded with retaliatory tariffs on $110 billion of American imports.

Moreover, Trump has threatened to impose additional duties on Chinese goods from the current 10 percent to 25 percent starting in January.

Observers said that notwithstanding a lack of progress, even speculation of continuing talks that would entail no further tariffs between the two sides could encourage the market.

Brokerages, meanwhile, expect the KOSPI to stay between 2,100 and 2,150 next week.

US-China trade talks to exert influence on Seoul bourse - 1


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