Seoul shares turn lower amid rising woes over US protectionism

Seoul, Jan 21 (IANS) South Korean stocks turned lower on Tuesday after new US President Donald Trump ordered his administration to address unfair trade practices globally.

Opening some 1 per cent higher, the benchmark Korea Composite Stock Price Index had lost 9.26 points, or 0.37 percent, to 2,510.79 as of 11:20 a.m, reports Yonhap news agency.

After the inauguration ceremony, Trump said he plans to enact tariffs of as much as 25 per cent on Mexico and Canada at the beginning of February.

He also vowed a change in electric vehicle policies in his inauguration address.

Later, he signed executive orders to review free trade deals, likely including the Korea-U.S. free trade agreement.

In Seoul, battery and chemical shares traded in negative territory.

Leading battery maker LG Energy Solution tumbled 5.4 per cent, and POSCO Future M plunged 10.33 per cent.

Top oil refinery SK Innovation slumped 4.4 per cent, and LG Chem sank 5.35 per cent.

However, chipmakers were strong as chip giant SK hynix advanced 1.42 per cent and Hanmi Semiconductor, a chip equipment producer, gained 2.22 per cent.

The local currency was trading at 1,439.35 won against the greenback at 11:20 a.m., up 11.25 won from the previous session.

Meanwhile, Trade Minister Cheong In-kyo will seek close consultations with his counterparts on ways to respond to trade policies under the second Donald Trump administration during the World Economic Forum in Davos, Switzerland.

Cheong will participate in the annual meeting of government and business leaders under the theme of "Collaboration for the Intelligent Age" from Wednesday to Friday (local time) to discuss pending global issues, according to the Ministry of Trade, Industry and Energy.

More than 350 government leaders and officials, as well as business leaders, are expected to attend the five-day event that began Monday, the ministry said in a release.

With President Trump taking office, the trade minister will meet with his counterparts from countries that share similar concerns over their trade relations with the United States to discuss ways to collaborate, it added.