Stocks, Tensions and South Korea’s GDP

It was an interesting day, as stocks in the Asia Pacific were mixed on Thursday. South Korea’s Kospi index dropped 0.56% to 2,216.19 as shares of firms such as Samsung, LG, Hyundai Steel as well as SK Hynix sold off.

Hopefully, automakers strengthened their positions. Shares of Hyundai Motor rose 5.06% while shares of Kia Motors gained 2.51%. Importantly, the Kosdaq index added 0.84% to 801.69.

Australia’s benchmark ASX 200 advanced 0.32% to 6,094.50. It is worth mentioning that, financial subindex gained 0.18% while the energy sector rose 1.24%.

Interestingly, shares in Taiwan fell on Thursday by 0.48% to 12,413.04 in the late afternoon trade.

However, mainland Chinese stocks saw losses on the day. The Shanghai Composite declined 0.24% to 3,325.11. At the same time, the Shenzhen Composite closed near flat.

Also, Hong Kong’s Hang Seng index added 0.54% in late-afternoon trade.

Tensions between the largest economies in the world escalated after the U.S. State Department made the decision to close the consulate in Houston, which belongs to China. The People’s Republic of China warned of firm countermeasures if the U.S. does not change this decision.

Stocks and Asia’s fourth-largest economy

South Korea’s central bank released advanced estimates regarding the country’s gross domestic product (GDP). According to this data, growth declined by 3.3% in the second quarter of this year. As a result, compared to the first quarter this number increased from 2.9% to 3.3%.

It is worth mentioning that exports fell 16.6% due to declines in motor vehicles, coal, as well as petroleum products. This is a serious problem for Asia’s fourth-largest economy. The coronavirus pandemic created a lot of problems for the countries around the world. Moreover, the pandemic is far from being over as cases surpassed 15 million. Consequently, it would take time to get the global economy back on track.