South Korea’s export growth slowed in September, with shipments to the United States barely increasing, in an outcome that may support market expectations for an easing of monetary policy as early as next week.
Mongkol Chuewong | Moment | Getty Images
Asia-Pacific markets were set to open lower Tuesday after Wall Street fell overnight as Trump tariffs stoke a risk-off mood, while investors awaited the Bank of Korea’s rate decision.
Australia’s S&P/ASX 200 fell 0.47% at the open.
Japan’s Nikkei 225 futures pointed to a lower open for the market after coming back from a holiday. The futures contract in Chicago was at 38,065 while its counterpart in Osaka last traded at 38,050 compared with the index’s previous close of 38,776.94.
Hong Kong’s Hang Seng index futures were at 22,824, also below the HSI’s last close of 23,341.61.
The Bank of Korea is expected to cut rates by 25 basis points in its meeting later in the day, according to a Reuters poll. The BOK could “prioritize economic growth stabilization over external financial imbalance risks amid stable inflation,” according to Citi analysts.
South Korea has been facing political uncertainty, stemming from the impeachment proceedings against President Yoon Suk Yeol after his short-lived imposition of martial law in December.
Overnight in the U.S., the markets failed to spring back from last Friday’s sell-off. The broad market index lost 0.5%, closing at 5,983.25. The Nasdaq Composite fell 1.21%, ending the session at 19,286.92. The Dow Jones Industrial Average inched up 33.19 points, or 0.08%, to close at 43,461.21.
Ongoing concerns about U.S. President Donald Trump’s trade war with key trading partners continued to weigh on market sentiment. Trump on Monday declared that tariffs on Canada and Mexico will be implemented once the one-month delay period concludes next week.
—CNBC’s Hakyung Kim and Jesse Pound contributed to this report.
