South Korean stocks reached their lowest level in over seven weeks as investors adopted a cautious stance ahead of the upcoming U.S. presidential election. Alongside the weakened Korean won, the yield on benchmark bonds also saw a decline. The Korea Composite Stock Price Index (KOSPI) fell by 1.05% this week, marking its third consecutive weekly drop.
Recent data revealed that South Korea's export growth in October has slowed to a seven-month low, falling short of market expectations. This decline is attributed to a cooling global demand and uncertainties surrounding the U.S. election.
An analyst from Samsung Securities, Seo Jung-hun, noted that the market was predominantly cautious, with a perceived higher probability of a Trump victory influencing sentiments.
Additionally, a latest survey indicated that South Korea's factory activity contracted for the second straight month in October, with output shrinking at the fastest rate in 16 months. This further highlights signs of a global demand slowdown.
