Newscasts - Asia Markets Briefing: South Korean shares bounce back

Mao Geping Cosmetics

10/12/2024 09:11

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Source: 'Reuters - Business videos'

Description: The Kospi scored its biggest one day gain in three months on
Tuesday, up two-and-a-half percent to wipe out virtually all of Monday's
losses. But it was a decidedly more mixed session in China.
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Video Transcript:

South Korean shares bounce back. Welcome to Asia Markets Briefing. I’m
Thomas Warner. The KOSPI scored its biggest one-day gain in three months on
Tuesday, up 2.5% to wipe out virtually all of Monday’s losses. Korean
stocks have been on a real roller coaster since last weeks botched declaration
of martial law by President Yoon. It all got a bit much for the finance
ministry. They vowed on Tuesday to stabilizing measures. Investors also took a
heart from news that the country's main opposition party will pass the 2025
budget. It all added up to make the KOSPI by far the day's biggest gainer on
what turned out to be a volatile session. China stocks initially roared into
the new day, gaining several percent on hopes for more stimulus. But the
Shanghai and Hong Kong markets gave up all their gains and more at times, as
traders price in a huge variety of variables. Perhaps the single biggest of
them is the impact of the upcoming Trump presidency on trade. Fresh data are
out on Tuesday showed a shock slowdown in China's exports in November, as well
as an unforecast contraction in total imports. And that’s before Trump
takes office. He's threatened tariffs on Chinese exports in excess of 60% when
he does threats that have rattled China's industrial complex, which sells
goods worth $400 billion a year into the US. Tension over Taiwan is also
adding to the market jitters. The Taiwanese defense minister says that China
has deployed its largest naval fleet since 1996 in regional waters. They
believe it's a response to President Lai Ching-te’s recent trip to Hawaii
and the US territory of Guam, though Beijing is yet to comment. Let's have a
look at a few corporate stories now, Chinese beauty firm Mao Geping made its
debut on the Hang Seng. It was Hong Kong best IPO in four years. Shares in the
makeup maker jumped 85% after an initial raise of $300 million, boosted by the
high profile of its eponymous founder. Meanwhile in Japan, Bain Capital backed
chipmaker Kioxia also made its trading debut on Tuesday. The IPO raised JPY120
billion. That's $800 million, including an overallotment after shares were
priced in the middle of their marketed range. The bank-led consortium acquired
the chip maker from scandal hit conglomerate Toshiba for JPY2 trillion back in
2018. And in India, the governments forcing clean energy firms to use only
locally made solar panels from June 2026. They are trying to curb imports from
top supplier China. Tata, Reliance and Adani are all ramping up their
production capacity ahead of the ban. And we're going to finish off with an
update on Nippon Steel's potential takeover of US Steel. The boss of US
Steel’s labor unions has been speaking to Reuters, he says he's got
profound reservations about what the deal could mean for US workers.

Nippon Steel is investing $14 billion in buying each facility. They want to
return on that investment, but it can't be harvesting our facilities. And
letting them slowly but surely over a period of time deteriorate so that they
can then bring product in from there other facilities around the world and
have access to our market.

And that's it for your Asia Markets Briefing