Seoul stocks face fresh uncertainty as Democrats retake US Congress
Korean stocks face growing policy uncertainty after Democrats regained control of both the Senate and the House of Representatives in the U.S. midterm elections, according to market analysts, Wednesday. They say obstacles to extending corporate tax cuts and the prospect of stricter oversight of Big Tech and artificial intelligence (AI) could fuel volatility in Korea’s tech-heavy stock market.…
Korean stocks are grappling with heightened policy uncertainty following the Democrats' control of both the Senate and House in the U.S. midterm elections, according to market analysts, as reported on Wednesday. Analysts warn that potential hurdles to extending corporate tax cuts and stricter oversight of Big Tech and artificial intelligence could lead to volatility in Korea's tech-focused stock market.
However, significant policy shifts seem improbable due to President Donald Trump's veto power and executive order capabilities, according to the analysts. In the medium term, Korean stocks are likely to be influenced more by AI investment returns, semiconductor demand, and foreign investor flows than the election outcome itself.
The KOSPI closed modestly higher after a turbulent trading session, with investors weighing the consequences of the Democrats' triumph. Following a 2.24% increase the previous day, the benchmark opened at 5,786.13, rising by 137.34 points, or 2.43%, and peaking at 5,828.13, a 3.17% gain. It subsequently declined, dipping as much as 4.02% to 5,421.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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