Asia Slightly Red, Yen Remains Strong: Korean Tariffs Make Markets Slightly Slight
Asian markets moved slightly lower after tariff concerns resurfaced. South Korea was the focus: the Kospi fell around 0.9%, while the won weakened after several days of strengthening. In Japan, stocks fell again as a stronger yen weighed on exporter sentiment.
The main trigger came from Washington. US President Donald Trump threatened to raise tariffs on South Korean imports to 25% on a number of goods, arguing that last year's trade deal had not yet been "locked in" through the Korean legislative process. At the same time, other tariff issues persisted, including the threat of 100% tariffs on Canada if Ottawa pursues a trade deal with China—making the market even more hesitant to take risks.
In the currency market, the yen held firm around 154 per dollar after strengthening in the past two sessions. The yen's rise was fueled by speculation about US-Japan coordination, especially after reports of a rate check by the New York Fed and statements by Japanese officials that they were coordinating closely with the US on foreign exchange movements.
Amid this tug-of-war, safe-haven assets remained popular. Gold and silver are still trading near record highs as investors seek safety while tariff and geopolitical issues keep markets volatile. Meanwhile, in the US, stocks rallied on Monday, as investors await a week of earnings from tech giants—a major test of whether the AI-driven rally is still going strong or starting to tire.
Macroeconomic factors are also adding to the mix: a winter storm in the US is weighing on the energy sector, and US natural gas prices have surged nearly 30% as extreme weather is expected to cut supply (around 12% of production was affected). In bonds, the market is likely awaiting the Fed's decision on Wednesday—which is widely expected to hold interest rates—so it's understandable that market participants are taking small steps first. (asd)
Source: Newsmaker.id
