On Tuesday morning (27 January, 9:21 AM, GMT+7, Bangkok time), major indices in the Asia Pacific showed uneven performance after President Donald Trump signaled the possibility of increasing tariffs on South Korea from 15% to 25%. The move comes as uncertainty builds around Seoul’s delayed legislative approval of a new trade agreement with Washington, raising concerns among investors.
At the start of trade, South Korea’s Kospi index dropped by up to 1%, with major automotive names Hyundai and Kia experiencing declines of up to 4% and 5% respectively. The Kospi later recovered these losses during the session.
The tariff threat emerged as investors also braced for an imminent interest rate decision from the Federal Reserve and awaited quarterly results from major technology firms.
The U.S. central bank is likely to maintain current interest rates after three reductions took place at the end of 2025. Improved stability in the labor market has contributed to greater consensus among policymakers following a period of disagreement within the Federal Reserve.
Japan’s NIKKEI climbed by 0.09% to 52,931.49. South Korea’s KOSPI rose by 1.35% to 5,016.54, and Australia’s ASX 200 grew by 1.02% to 8,950.30.
As for stocks in China, Shanghai’s SSEC dropped by 0.55% to 4,110.01. Shenzhen’s SZI plummeted by 1.12% to 14,155.88, while Hong Kong’s HSI increased by 0.61% to 26,928.90.
The U.S. stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) gained 0.64% to 49,412.40. NASDAQ surged by 0.43% to 23,601.35, and S&P 500 advanced by 0.50% to 6,950.23. VIX expanded by 0.37% to 16.15.
As for commodities, oil prices settled lower on Monday, with Brent crude ending at $65.59 a barrel, down 29 cents or 0.4%. U.S. West Texas Intermediate futures retreated by 44 cents, or 0.7%, settling at $60.63 per barrel. These moves followed gains of over 2% in the previous trading session. Investors evaluated potential disruptions to U.S. crude output from recent winter storms, along with the possible effects of ongoing U.S.-Iran tensions.
This morning, Brent crude futures lost 35 cents, or 0.53%, to $65.24 per barrel, and the WTI declined 29 cents, or 0.48%, to $60.34 per barrel.
Meanwhile, gold futures dipped by 0.42% to $5,061.10 per Troy ounce.
