South Korean auto stocks fall after Trump hikes tariffs

Trump said on Truth Social that the country’s legislature has not approved Seoul’s trade deal with Washington, and that tariffs on the South Korea will climb to 25%, from 15%.

The Kospi reversed losses to gain 2.73%, leading Asian markets and reaching an all-time high of 5,084.85.

The small-cap Kosdaq was also in positive territory, climbing 1.71% to more than a four-year high at 1,082.59.

Auto heavyweights Hyundai and Kia plunged as much as 4% and 5%, respectively, at the open. But both pared losses with Hyundai last trading 0.81% lower, while Kia was still down 1.1%.

Elsewhere, Asia-Pacific markets were also up. Australia’s S&P/ASX 200 climbed 0.92% and closed at 8,941.6 to its highest level in almost 3 months, after coming back from a holiday on Monday.

Japan’s Nikkei 225 reversed losses to trade 0.85% higher and finish at 53,333.54, powered by industrial and tech stocks, while the Topix rose 0.31% to 3,563.59.

Hong Kong’s Hang Seng index gained 1.27% in its final hour of trade, with basic materials stocks driving the rise, while the CSI 300 on mainland China ended marginally down at 4,705.69.

Shares of Anta Sports in Hong Kong inched up after the company announced a $1.8 billion purchase of a 29.06% stake in sportswear giant Puma. The stock was up 1.57%.