time now for an in-depth look at the market news this afternoon and for
that i'm joined on the line by dr kim saiwan professor of economics at ewa
women's university professor kim good afternoon thank you for coming on today
good afternoon well the u.s markets were closed on monday for federal holiday but on tuesday
closed much higher in a bounce back from their worst week in over two years the gains
relatively even across the main indices at over 2 percent what's the story in the global markets
u.s stocks rally tuesday through their worst weeks since march 2020 this rally gave some breathing
spaces uh for u.s investors after a quick money losing recently the s p 500 gained 2.4 percent
the dow jones uh added 2.1 and the nasdaq uh also jumped 2.5 on tuesday investors appetite for
riskier assault in on tuesday follows a tumultuous week in in the markets uh sparkles sparked by
the federal reserve approval of 0.75 interest rate increase the the largest largest since 1994.
investors scrambled to unload riskier assets amid growing fears that central bankers will plunge the
u.s economy into a recession meanwhile investors await further commentary from federal reserve
chairman jerome power when he testifies before congress on both wednesday and thursday all major
markets in asia fell today as of 4 p.m in seoul time uh nikkei dropped a 4.4 percent sunlight
index also retraded one percent hong kong's hung-seng further dropped by two percent today
right despite that uh gain on wall street asian stocks down including korea's
substantially today now below 2400 points big declines for samsung sdi sk hynix uh you name it
the exchange rate creeping back up to almost 1300 now tell us about the domestic market professor
domestic markets have uh retreated today as you said despite wall street gains yesterday
domestic investors and analysts say they expect more pain ahead in the markets as bank of korea is
expected to raise the key interest rate faster and higher from the beginning of last week according
to my calculation the cost be dropped six percent as of today uh today uh benchmark cosby dropped
2.7 percent and also kosta lost four percent in cosby market foreign and domestic institutional
investors that sold 400 billion won and it moved down uh market econo market today most of large
cap stocks dropped today samsung electronics dropped 1.5 percent and the second largest cap
uh lg energy solution also dropped 2.9 today but the celtrion a biotech firm gained 1.3 today
well now to talk about inflation uh the bank of korea is saying that prices are being pushed up
both by supply and demand it's calling for inflation in the short term of above five
percent and it raised inflation forecast for last month what's going on with inflation professor
bank of korea said tuesday it expects inflation to grow at a faster pace than previously anticipated
and possibly hit the highest level in 14 years for this year as price pressures are
mounting from rising demand and a tight supply last month actually bank of korea
raised this inflation forecast for this year from previous uh 3.1 percent to 4.5
uh as inflation pressure intensifies quickly however
bank of korea further raised this inflation forecast this year from previous 4.5 to 4.7
this kind of frequent inflation forecast adjustment is really uh rare for bank of korea
so that represents how much bank of korea is embarrassed with current inflation situation
in an apparent forward guidance bank of korea's chairman says the central bank will carry out this
monetary policy with a priority on price stability until inflation ends is upward trend that means
that it will likely to continue to raise this key policy rate in in the months to come
well finally professor despite record-breaking exports of semiconductors cars and so on korea is
posting a trade deficit so far this year and could end up with a deficit for the year as a whole the
price of oil of course a main factor here because the war in ukraine and that could get worse what
should we be watching in terms of the trade balance and what can korea do about it in may
uh last month korea posted a trade deficit for the second consecutive month in the wake of spiraling
import prices of raw material despite its risk export performance korean exports increased by 21.
21.5 percent on year to record 61.5 billion dollars in may nonetheless the trade balance
was in red in may as imports volume reaches uh 63.2 billion us dollars of 32 also one year
but the ongoing ukraine russia award has brought about the spike a spike in import prices of crude
oil and other energy related products uh with the imports volume of crude crude surging by 35
on earth but on the other side it is estimated that korean economics trade deficit declines
as china's lockdown of shanghai disappears soon actually major countries including japan
france italy and the u.s are suffering a trade deficit amid rising energy prices
got it well professor we'll have to leave it there for today thank you as always
for coming on we really appreciate your insights as always thank you very much