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In-depth: Global market wrap-up
Updated: 2020-01-14 13:55:03 KST
Time now for an in-depth look at the market news this afternoon.
And for that, I'm joined on the line by Mr. Daniel Yoo, global strategist at Yuanta Securities.
Mr. Yoo, thank you for making time today.

Thank you.

The U.S. treasury department has removed its designation of China as a currency manipulator. Meanwhile, the Chinese delegation have arrived in Washington for the signing of the phase one trade deal. A lot going on right now what do you think global equities are going to do in the near term?

"For all the pomp and circumstance expected of the signing ceremony, many are still unsure of exactly what the two nations are agreeing to and how they'll enforce their deal.
"Corn options broker P.J. Quaid says "people have become pessimistic because a lot of the purchases [China] said they're going to make seem hard to attain."
"But the fact that Beijing is willing to crack down on policies concerning forced technology transfer is key, says former White House trade advisor Clete Willems.
"On paper, the deal includes a "dramatic expansion of U.S. food, agriculture and seafood product exports" as well as an agreement by China to end its long-standing practice of forcing or pressuring foreign companies to transfer their technologies to Chinese companies, according to a U.S. Trade Representative document.
"The USTR has also said the deal reiterates U.S. opposition to currency manipulation and a commitment by China to buy at least $200 billion in U.S. exports over the next two years.
I expect market to show some correction on the news of signing.
However, I expect market to rise further in the medium term because of expected greater improvement in world trade.

Korean stocks are also up on this news. Record highs recently for shares of Samsung Electronics and SK Hynix. What's the story there?

Today, SK Hynix and Samsung Electronics is taking a break.
I expect other sectors to benefit with the current changes.
I do not expect Won to appreciate much further from here while RMB will appreciate further.
Any sectors related to 4th industrial revolution will be attractive.
In Korea, electric car battery and Solar industry will be very attractive sectors to look at.

Meanwhile, Korea is still on the U.S. watchlist of possible currency manipulators. Experts say, though, that China's removal from the manipulator list will benefit the Korean economy. What's your view?

As mentioned earlier, RMB will appreciate further…
Korean won appreciated as well but I think at 1.7% interest rate vs. US 1.8% interest rate I do not expect Korean won to appreciate much.
Korean exporters will benefit in such case.
In any case, stable Korean won will allow foreign investors to invest into Korean equities.
Korea's economic growth will be affected based on How quickly Korea can show competitiveness in 4th industrial revolution industries.

Alright, Mr. Yoo. We'll have to leave it there for today.
Thanks so much for coming on and sharing your insights.
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