US Imposes 100% Tariff Bomb on Chinese Electric Vehicles [3-Minute Brief]

Published 13 May.2024 08:00(KST)

Updated 19 Jan.2025 10:57(KST)

[At a Glance]
① South Korea's Economic Growth Rate Forecasted at 2.5% This Year
② Will KOSPI Rise to 3000 Level in the Second Half?
③ Kakao Lowers Target Price Despite Strong Earnings

MARKET INDEX : Year to date

US Imposes 100% Tariff Bomb on Chinese Electric Vehicles [3-Minute Brief]

- Last week, KOSPI settled above 2700... Sharp rise centered on major semiconductor stocks
- KOSPI expected to surpass 2750 first rebound target and attempt to break 2800
- US April inflation data scheduled for release this week... Market impact in focus

TOP 3 NEWS

■ "US to raise tariffs on Chinese electric vehicles from 25% to 100%... Fourfold increase planned"

- Biden to announce tariff review on Chinese products on the 14th
- WSJ: Concerns that current measures are insufficient to block China's low-priced supply offensive
- Additional tariff hikes expected on key minerals, solar cells, batteries, etc.

■ Raised by 0.4%p in 6 months... KERI "South Korea's growth rate 2.5% this year"

- Korea Economic Research Institute (KERI) upwardly revises South Korea's economic growth rate to 2.5% this year
- "Improved export performance led by semiconductors... Real GDP recovery underway"
- Consumer price inflation expected to record 2.7% annually

■ Will KOSPI reach 3000 in the second half? Depends on US interest rate path

- KOSPI took a breather in April and recovered above 2700 this month
- Securities firms forecast KOSPI upper band between 2900 and 3100 in the second half
- Key factor determining market direction in the second half: whether US interest rates will be cut

Graphic News: "70,000 won is worth it"... Powerful 'fragrance effect' rivaling luxury bags

- Major department stores' niche perfume sales growth rates all in double digits from January to April
- Niche perfumes represent 'small luxury'... Affordable way to enjoy luxury effect
- Recent price increases in niche perfumes... Prices raised as demand grows despite economic downturn

the Chart: Kakao, target price lowered despite strong earnings... Will the adjustment period lengthen?

- Q1 earnings increased 22% year-on-year to 1.9884 trillion KRW
- Despite earnings growth, did not meet market expectations... Not an 'earnings surprise'
- "Difficult to expect further growth" ... Disappointing evaluation even with new management

Term in the News: Ministry of the Interior and Safety says 'No meteorological drought' until July

- Meteorological drought refers to a prolonged dry period with rainfall below average in a specific region
- Ministry of the Interior and Safety forecasts rainfall for the next three months to be similar to or above average
- Spring rainfall in South Korea is the second lowest after winter, causing frequent water shortages and droughts

Today's Key Schedule

○ Domestic
- 10th: KOSDAQ No Brand subscription / Expected offering price 8,700~11,000 KRW

- Daegu Hillstate Hwanggeum Station Reserve (Phase 2)
- Daegu Hillstate Hwanggeum Station Reserve (Phase 1)

○ Overseas
- 10:30 Australian National Bank April Business Confidence Index
- 12:00 New Zealand Inflation Expectations
- 18:00 EU Economic Forecast
- 21:00 India April Consumer Price Index
- 21:30 Canada March Building Permits
- 22:00 Federal Open Market Committee Mester speech

◇ Lunch & Commute Weather

○ Lowest temperature 13℃(▼4℃) ｜ Highest temperature: 25℃(0℃)
○ Precipitation probability morning 0%｜afternoon 0%
○ Fine dust morning Good｜afternoon Moderate

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.