증시 대담
It's time now for an in-depth look at the global markets on this Tuesday.
And for that, I'm joined on the line by Mr. Daniel Yoo, Global Strategist at Kiwoom Securities.
Mr. Yoo, thank you for coming on today.
Thank you.
Stocks on Wall Street started the week higher after positive comments from President Trump about the U.S. trade war with China. Korean stocks today too, substantially higher. What's the story there and elsewhere in Asia?
"President Donald Trump said Monday that China had contacted U.S. trade officials overnight to say they wanted to return to the negotiating table.
"Before leaving for the G-7, Trump said he would raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1. Additionally, he said, tariffs on another $300 billion of Chinese goods, which start to take effect on Sept. 1, will now be 15% instead of 10%.
"This is a response to China putting retalitory tariff on US goods
Clearly, trade war resulting into inflationary pressure is here to stay.
That is affecting the market quite negatively.
Kospi up 0.65%, Kosdaq up 1.3%
US market rose yesterday by 1~1.3%
Europe rose slightly by 0.2~1%
Nikkei up by 1.1%
China up Shanghai 1.7%, Shenzhen 2.25%
It was earlier this month that the Chinese yuan broke through 7 against the dollar, and it's continuing to go up. What does this mean, and for other Asian currencies, how are they affected?
Chinese RMB has depreciated to 7.17 level.
Chinese government seems to allow the currency to depreciate
Boosting domestic consumption, RMB appreciation needed. But as boosting domestic comsumption, Chinese government seems to allow domestic players to win the market share. Therefore, import growth continues to be negative.
Clearly, Chinese RMB depreciation = Korean Won depreciation
While US putting pressure on other country, RMB depreciation not making JPY to depreciate. That is negative news to Japan exporters.
Let's talk about bonds for a minute. Korean 10-year bond rate's been below the base rate for a couple of months. What's happening here?
10 year bond rate = long term growth rate potential of the country.
Korea 10 year 1.22%
Korea 3 years 1.12%
Korea economic recession is in play.
Further call rate cut by 25 basis points needed.
US China dispute. Korea Japan dispute all resulting to weak export growth (negative numbers)
Alright, Mr. Yoo. We'll have to leave it there for today.
Thank you for sharing your insights with us.
