KOSPI Index Ends Close To 200 Day MA, With U.S Tariffs Back To The Fore

The KOSPI index closed the final day of the week, and month with a significant decline, dropping by 3.39% and closing at 2532.78, almost 90 points down on the day. This downturn was primarily attributed to increased concerns regarding tariffs that were part of the trade policies during the Trump administration. The decline was further exacerbated by a sharp fall in Nvidia's stock, which added to the negative sentiment in the market.

Samsung Electronics shares fell by 3.2%, SK Hynix by 4.52%, and LG Energy Solution's stock by 4.99%, as the big market cap index names suffered.

Alongside the KOSPI, the KOSDAQ index also fell by 3.49% and ended the week trading at 743.96. The recent run, as the index has fallen 5 out of the past 7 days, is a far cry from the previous rally which had stretched to 8 consecutive positive days leading into the sentiment shift. The market volatility has largely been driven by uncertainties in the international trade environment, with tech, growth, and crypto all seeing significant declines.

For the time being, the KOSPI is holding on above the 200 day moving average, but with the mark just a few points below the latest close, those following technicals will be eagerly awaiting the next move.

The renewed fears surrounding Trump-era tariffs have repeatedly influenced market sentiments, casting a shadow over global trade relationships. These concerns have been periodically resurging, impacting various stock markets globally, and this instance was no exception. There had been a feeling that markets were looking through tariffs, almost ignoring the threats in recent weeks, however this latest round has been firmly felt.

An additional 10% on Chinese imports, alongside the intent to implement tariffs on Mexico and Canada starting as soon as next week are hard to ignore. With commentary surrounding Fentanyl again on the agenda, there is some hope that negotiations may provide a further stay of execution, yet this is becoming less certain as the deadline closes in.

Despite these challenges, experts suggest that long-term investors continue to focus on fundamentals and maintain diversified portfolios to weather short-term market fluctuations. As the situation evolves, continuous monitoring of international trade policies and developments in key sectors such as technology remains crucial for investors .