“Japan and South Korea will be in a Trade War”
Japan has tightened control of three key semiconductor raw materials for export to South Korea. The market is worried that Japan and South Korea will be in a trade war. Both Japan and South Korea’s stock markets have fallen today. Investment believes that Japan-South Korea relations are not good, and both countries will be “injured” in the long run.
Huang Guowei, the associate of Zhaofeng Investment Co., said that the decline of Korean stocks was mainly due to the unsatisfactory LG and Samsung financial reports, as well as the impact of trade war between Japan and South Korea. Cai Minghan, manager of the advisory office of Cathay Pacific Securities, pointed out that Japan’s policy of strengthening exports to the ROK is biased towards short-term themes. The plant’s substantial contribution is not significant.
The dispute between Japan and South Korea due to the employment of former employers (South Korean workers forced by Japanese companies) has deteriorated. The Ministry of Economy, Trade and Industry announced on the 1st that it will strengthen the control of three key electronic raw materials for export to South Korea, including fluorine-containing polymerization, from July 4th. Fluorine Polyimide, Resist and Eatching Gas are considered counter-measures against South Korea. The South Korean government did not show weakness and said it would take counter-action.
The market worried that Japan and South Korea may have a trade war. The Tokyo Stock Exchange’s Nikkei 225 index fell 212.03 points or 0.98% to close at 21,534.35 points, while the Dongzheng index fell 14.18 points or 0.89% to close at 1,578.4.
South Korea’s KOSPI index opened lower and fell 2.2% at the end of the session, closing at 2,064.17 points, reaching a new low of more than a month. The market speculated that Japan restricted exports of key semiconductor materials and devices to South Korea, and continued to suppress technology stocks, index shares Samsung Electronics, SK Hynix fell.
The Taiwan stock market weighted stock price index opened lower today. During the session, the Asian stock market weakened and fell. It fell to 10,708 points. The final decline was converging, falling 34.51 points to close at 10,751.22 points, a drop of 0.32%. The performance was relatively resistant.
Liu Peizhen, a researcher at the Taiwan Economic Research Institute, believes that Japan’s control of three raw materials exported to South Korea will mainly affect South Korea’s memory-based semiconductor industry, especially fluorinated polyimine and hydrogen fluoride. The key raw materials for semiconductors, and Japan’s global market share is as high as 80% to 90%, it is difficult to find alternative sources of imports.
Chu Xiangsheng, chairman of South China Investment Association, told the Central News Agency that the current situation seems to be more unfavorable to South Korea. However, if Japan and South Korea have a bad relationship, the two countries will be “injured” in the long run, and the stock market will fall, except for the Japan-South Korea trade war. It has also been affected by factors such as the pullback of US stocks from historical highs.
He further said that the market is worried that Japan and South Korea will be in a trade war, but it is still in its early stage. It will take some time for consultation and negotiation, and it must be observed continuously. The global semiconductor industry has already been affected by the Sino-US trade war. If Japan and South Korea occur again. The trade war is undoubtedly “fueling on fire.”