Synopsis
As uncertainties regarding prices remain elevated due to geopolitical issues and trade conflicts, Bank of Korea's Deputy Governor Kim Woong highlights inflation's expected fluctuation around target levels.Key Takeaways
- High uncertainty surrounding inflation due to global factors.
- Consumer prices rose by 2% in February.
- BOK projects 1.9% price growth for 2025.
- South Korean stocks opened higher following U.S. tariff postponement.
- Major sectors like technology and finance showed gains.
Seoul, March 6 (NationPress) High levels of uncertainty persist regarding prices, primarily due to geopolitical issues and trade conflicts among leading nations, as stated by the central bank on Thursday.
During a meeting focused on monitoring prices, Bank of Korea (BOK) Deputy Governor Kim Woong expressed these concerns after government statistics revealed that consumer prices, a vital indicator of inflation, increased by 2 percent year-over-year in February, following a 2.2 percent rise in January.
"There remains considerable uncertainty concerning geopolitical situations, trade conflicts, the foreign exchange rate, and domestic demand," Kim remarked.
He further noted, "Inflation is anticipated to hover around our target level, considering both downside and upside risks." The BOK has projected a 1.9 percent increase in prices for 2025 according to its latest forecast.
On a different note, South Korean stocks began the day positively on Thursday after the U.S. government agreed to postpone auto tariffs on Mexico and Canada.
The benchmark Korea Composite Stock Price Index (KOSPI) rose by 19 points, or 0.74 percent, reaching 2,577.13 within the first 15 minutes of trading.
Meanwhile, major U.S. stocks rebounded overnight as investor sentiment improved after the Trump administration suspended new auto duties on Mexico and Canada for one month, indicating potential for further tariff negotiations.
The S&P 500 increased by 1.12 percent, the Dow Jones Industrial Average rose by 1.14 percent, and the tech-heavy Nasdaq climbed by 1.46 percent.
In Seoul, tech giant Samsung Electronics gained 0.37 percent, while its competitor SK hynix saw a slight decline of 0.05 percent.
Leading battery manufacturer LG Energy Solution surged by 2.25 percent, and steel giant POSCO Holdings soared by 5.61 percent.
Automakers also performed strongly, with Hyundai Motor increasing by 2.26 percent and its affiliate Kia rising by 2.92 percent.
Financial stocks showed a bullish trend, with KB Financial up by 2.35 percent and Shinhan Financial increasing by 3.47 percent.
However, major defense contractor Hanwha Aerospace experienced a decline of 1.29 percent.
Notable shipbuilders Hanwha Ocean and HD Hyundai Heavy also saw losses of 0.75 percent and 0.79 percent, respectively.
