Headline: Asia Market Brief: Seoul Moves to Steady Won, China Housing Slips, Korea Lifts EV Support
Introduction: Global markets turned cautious as fresh signals from Asia reshaped the risk backdrop. South Korea flagged readiness to stabilize the won after a sharp slide, China posted another drop in new home prices, and policymakers in Seoul boosted electric-vehicle subsidies to cushion tariff risks. Energy transition headlines remained mixed, while a sharp selloff in AI-heavy tech names weighed on broader sentiment.
South Korea indicated it stands ready to defend the won after the currency fell to a seven-month low, citing persistent dollar strength and trade-related uncertainty. In China, new home prices fell 2.2% year over year in October, underscoring ongoing pressure in the property sector. The People’s Bank of China set the daily USD/CNY reference at 7.0825—stronger than market estimates—signaling continued guidance toward a steadier yuan and tighter control of currency volatility.
Industrial policy took center stage as Seoul raised EV subsidies by 20% to 936 billion won to support domestic adoption and safeguard export competitiveness. The move comes as Korean auto makers face potential U.S. tariffs of up to 15%, even as auto exports reached $70.8 billion. In the energy transition space, project economics remain under strain: rising costs and policy pushback have prompted job cuts at a major offshore wind developer and exits from select projects by large energy firms. Countering the trend, Rio Tinto signed a 15-year virtual power purchase agreement for 78.5 MW of wind capacity to power Utah operations and advance cost and carbon goals.
Equity sentiment softened after mega-cap tech stocks retreated, with leading AI plays sliding about 5% and marking the worst day in a month for the cohort. Investors reassessed lofty valuations and the interest-rate outlook, adding a defensive tone to trading across global markets.
Key Points: – South Korea signals intervention readiness as the won hits a seven-month low. – China’s new home prices fell 2.2% year over year in October, extending property weakness. – PBOC set the USD/CNY fix at 7.0825, stronger than market expectations. – Seoul boosts EV subsidies by 20% to 936 billion won amid potential U.S. tariffs; auto exports reached $70.8 billion. – Renewables face cost and policy headwinds; a major wind developer cuts jobs while another energy company exits projects. – Rio Tinto inks a 15-year VPPA for 78.5 MW of wind capacity; AI-focused tech stocks drop around 5%, dragging broader markets.
