Trump’s Return Fuels Growing Disconnect Between US and South Korean Stock Markets

Seoul, South Korea – The recent victory of former US President Donald Trump in the USelection has propelled the American stock market to new heights, but the South Korean stock market has failed to follow suit, leading to a widening disconnect between the two markets.

On November 12th, the Korea Composite Stock Price Index (KOSPI) closed at 2482.57 points, down 1.94% from the previous trading day, falling below the 2500-point mark for the first time in over three months since August 5th. Conversely, the S&P 500 and Dow Jones Industrial Average bothreached new highs during trading on November 11th in New York.

Historically, the South Korean stock market has generally mirrored the performance of the New York market due to the significant influence of foreign investors. However, the disconnect between the twomarkets has intensified since Trump’s election victory.

Experts widely attribute this divergence to concerns over Trump’s trade protectionist policies and the uncertainty surrounding his future administration. The market anticipates that Trump will likely implement further tariffs and protectionist measures, potentially impacting global trade and South Korea’s export-driven economy.

The market is worried about the potential for increased trade tensions and uncertainty under a Trump administration, said Kim Young-jun, an economist at Hana Financial Investment. This uncertainty could weigh on South Korean businesses and investors for some time.

The widening gap between the US and South Korean stock markets highlights the growing economic anxietiessurrounding Trump’s return to power. While the US market seems to be riding a wave of optimism fueled by potential economic stimulus and tax cuts, the South Korean market is facing a more cautious outlook, reflecting concerns about the potential impact of Trump’s policies on its economy.

References:

  • Yonhap News Agency(2024, November 12). Trump’s Return Fuels Growing Disconnect Between US and South Korean Stock Markets. Retrieved from [link to the original article]

Note: This article is based on the provided information and is intended to be a factual report. It does not express any personal opinions orbiases.


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