Time now for a look at the market action here in Korea and around the world, and for that we're joined on the line by Daniel Yoo, Global Strategist at Kiwoom Securities.
Thanks for making time, today, Mr. Yoo.
So yesterday was the 12th session in a row of gains on the KOSPI, the first time that's happened in 13 years. But today, it looks like we broke that streak.
Take us through the trade today, Mr. Yoo.
Kospi and Kosdaq both showing correction
Kospi down 0.2%, Kosdaq down 0.97%
As Chinese market showing correction, and US market also losing steam to go up, lack of catalyst is making Korean market to correct.
Korean market is also moving on Theme.
Sales of Asiana airline and corporate governance issue are making Korean market to focus themes. Macro environment is not making any headwinds.
Low interest rate environment is key issue and Korea will be watching out for stock trading tax cut of 0.05% pt, and supplementary fiscal budget of 7 trillion.
We've had a good run elsewhere in Asia. The U.S. doing quite well too in the first quarter. What do we see happening abroad?
Chinese market is showing quite sizable correction. As of today, three days correction continues.
After Shanghai up 30% plus, and Shenzhen up 40% plus, correction is necessary.
Liquidity reduction concerns exist - no interest rate cut.
Economic turnaround seen in various numbers
US market earnings coming through
Particularly on banking sector.
Net interest margin worries continue.
However, Trump talking about 5-G, we expect strong focus on 4th industrial revolution stocks.
On Tuesday, we're supposed to get the U.S. treasury report on currencies. Now, Korea has been on the Treasury Department's watch list, suspected of currency manipulation. That is expected to stay the same. What are investors here in Korea expecting to see in that r eport?
With recent Korean Won moving to 1140 level, much weaker than expected Korean will be still included in observatory status.
The U.S. Department of the Treasury delivers to Congress the semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States. The Report concluded that while the currency practices of six countries were found to require close attention, no major U.S. trading partner met the relevant 2015 legislative criteria for enhanced analysis during the period covered by the Report. Further, no trading partner was found to have met the 1988 legislative standards during the current reporting period.
The Treasury Department is working vigorously to ensure that our trading partners dismantle unfair barriers that stand in the way of free, fair, and reciprocal trade. Of particular concern are China's lack of currency transparency and the recent weakness in its currency. These pose major challenges to achieving fairer and more balanced trade, and we will continue to monitor and review China's currency practices, including through ongoing discussions with the People's Bank of China. This applies to Kore as well. Korean won likely to appreciate after dividend payout transaction ends
Okay, Mr. Yoo, we'll have to leave it there. Thanks so much for your your insights today.