S.Korea steel shares jump ahead of possible U.S. trade deal (updated)

Husteel

26/03/2018 02:52

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    SEOUL, March 26 (Reuters) - South Korea's steelmakers rose
sharply on Monday, with Dongbu Steel  016380.KS  leading gains,
ahead of a possible trade deal between Seoul and Washington.
    Washington has said that the United States and South Korea
could announce a trade deal this week that would cover an
exemption from U.S. steel and aluminum tariffs and other trade
issues.  urn:newsml:reuters.com:*:nL1N1R51N4    
    South Korea's trade minister Kim Hyun-chong told reporters
on Sunday that Seoul and Washington have agreed "in principle"
on a free trade deal and steel tariffs, without elaborating. He
plans to hold a briefing at 11:30 am Seoul time (0230 GMT).  
    Dongbu Steel shares surged as much as 21.8 percent and
Husteel shares  005010.KS  jumped 7.3 percent, before giving up
much of their gains, while Seah Steel  003030.KS  rose 5.5
percent.
    Auto shares, which are also expected to be affected by any
trade deal, moved tentatively with Hyundai Motor  005380.KS 
easing 0.3 percent and Kia Motors  000270.KS  slipping 0.8
percent in a nearly flat broader market  .KS11 .
    It was not immediately clear whether a deal would encompass
a revamp of the 2012 U.S.-South Korea Free Trade Agreement,
known as KORUS, which has been under negotiation for several
months.
    South Korea and the United States earlier this month held a
third round of negotiations on revising the trade pact. Reducing
South Korean non-tariff barriers to U.S. automotive exports has
been a priority for the Trump administration.
    Trump late on Thursday issued a proclamation that South
Korea, Argentina, Australia, Brazil and the European Union would
get temporary exemptions from steel and aluminum tariffs, along
with Canada and Mexico's earlier exemptions. The exemptions run
until May 1 as discussions continue.  urn:newsml:reuters.com:*:nL1N1R505C

 (Reporting by Dahee Kim and Hyunjoo Jin; editing by Richard
Pullin)
 ((Dahee.Kim@thomsonreuters.com; +82 2 3704 5643; Reuters
Messaging: dahee.kim@thomsonreuters.com))