Seoul: South Korean stocks turned lower late Tuesday morning after starting marginally higher, amid growing concerns over the imminent imposition of U.S. tariffs on Canadian and Mexican goods. The benchmark Korea Composite Stock Price Index (KOSPI) had lost 3.2 points, or 0.13 percent, to 2,529.58 as of 11:20 a.m.
According to Yonhap News Agency, major U.S. shares slid overnight after U.S. President Donald Trump confirmed that 25 percent tariffs on goods from Mexico and Canada would take effect as planned on Tuesday (U.S. time), sparking fears of a global trade war. The S and P 500 dropped 1.76 percent, the tech-heavy Nasdaq tumbled 2.64 percent, and the Dow Jones Industrial Average declined 1.48 percent.
In Seoul, big-cap shares were mixed. Market bellwether Samsung Electronics fell 0.18 percent, while its chipmaking rival SK hynix, a key supplier to Nvidia, dipped 2.64 percent. Leading battery maker LG Energy Solution plunged 4.12 percent, and top carmaker Hyundai Motor dropped 0.98 percent.
On the other hand, major defense firm Hanwha Aerospace surged 15.49 percent due to concerns that geopolitical tensions will worsen after the White House announced Trump has paused military aid to Ukraine following his clash with Ukrainian President Volodymyr Zelenskyy last week. Leading shipbuilder Hanwha Ocean soared 13.06 percent on expectations for increased cooperation between Seoul and Washington in the industry. Its rival, HD Hyundai Heavy, also climbed 2.87 percent.
The local currency was trading at 1,458 won against the dollar at 11:20 a.m., up 5.4 won from the previous session.