Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Post a Comment

Korean Won Under Pressure as Trump’s Tariff Threat Looms



Key Takeaway: The South Korean won, one of Asia’s worst-performing currencies, faces further depreciation risks as Trump’s potential tariffs and macroeconomic challenges weigh on its outlook.

The South Korean won hit 1,410.70 per dollar last week, its weakest since November 2022, amid fears that US President-elect Donald Trump may impose tariffs on Korean goods. Analysts predict the won may decline an additional 0.7%, adding to this year’s 7.7% drop.

Factors Driving Weakness:

  1. Export Dependence: South Korea’s exports, particularly semiconductors critical for AI, are vulnerable to scrutiny as the US is its second-largest trading partner after China.
  2. Macro Pressures: Rising US bond yields and foreign selling of Korean stocks have further weakened the currency. Key companies, such as Samsung Electronics, reported disappointing earnings, spurring equity outflows.

Market Outlook:

  • Bank of America Securities expects the won to hover near 1,400 per dollar through 2024, underperforming regional peers due to persistent equity outflows.
  • Early November trade data, due Nov 21, will provide insight into the pace of export recovery and prospects for a central bank rate cut.
  • Analysts note that technical indicators show the dollar-won pair is nearing overbought territory, suggesting limited downside in the near term. However, intervention by policymakers may provide temporary support.

Expert Views:

  • Shaun Lim, FX strategist, warns that Trump’s focus could shift from Taiwan to Korea, citing chip industry tensions.
  • Moon Junghiu of KB Koomin Bank revised his year-end forecast to 1,330 per dollar, reflecting continued downside risks.

Key Economic Events This Week:

  • Nov 18: Thailand GDP, Japan machine orders, Singapore non-oil exports.
  • Nov 19: Malaysia trade data, Philippines balance of payments.
  • Nov 20: South Korea PPI, Indonesia rate decision, Taiwan export orders.
  • Nov 21: South Korea 20-day trade data, Hong Kong CPI.
  • Nov 22: Japan CPI, Malaysia CPI, Taiwan unemployment rate.

As Trump’s fiscal policies create uncertainty for trade-reliant economies, the Korean won remains vulnerable, with risks of further depreciation persisting into 2025.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

3M Raises Profit Forecast After Beating Quarterly Estimates on Electronics Demand

3M Co raised the lower end of its full-year adjusted profit forecast after strong demand for electronics and industrial products helped the company surpass quarterly profit expectations. Shares of 3M were up 4.2% at $140.5 in pre-market trading. An increase in demand for electronics used in vehicles and mobile phones boosted profits for the company, which had previously faced challenges as high inflation led consumers to delay major purchases. The industrial sector is also expected to benefit from the recent US Federal Reserve decision to cut borrowing costs in September, encouraging more consumer spending. 3M has implemented cost-cutting measures, including job reductions and spinning off its healthcare business, to counter the impact of a demand slowdown . Key highlights from the report: Sales in the transportation and electronics segment grew 1.8% year-on-year. Sales in the safety and industrial segment , which produces adhesives for industrial use, increased by 0.5% . 3M&
Post a Comment
Read more

Key Corporate Updates from Malaysia

Ekovest Bhd : Major shareholder Tan Sri Lim Kang Hoo is considering selling his toll-road business, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), for up to RM5 billion. Ekovest owns 60% of Kesturi, with the remainder held by the Employees Provident Fund (EPF). Eco World Development Group Bhd : Through its subsidiary Mutiara Balau Sdn Bhd, EcoWorld is acquiring 847.25 acres in Semenyih, Selangor for RM742.41 million to develop Eco Forest 2, a project with an estimated RM4.6 billion in gross development value. Mah Sing Group Bhd : Mah Sing has purchased 5.24 acres on Old Klang Road for RM113 million to build M Aurora, a transit-oriented development with an estimated RM660 million gross development value, anticipated for launch in early 2025. Pentamaster Corp Bhd : The company’s third-quarter net profit dropped 49.9% to RM11.77 million, impacted by lower sales in its automated test equipment division and foreign exchange losses. Sentral REIT : The REIT saw a 25
Post a Comment
Read more