South Korea Auto Stocks Jump as U.S. Lowers Tariffs to 15%

By Faizal

02 Dec 2025

South Korea Auto Stocks Jump as U.S. Lowers Tariffs to 15%

South Korean auto shares rose on Tuesday after U.S. Commerce Secretary Howard Lutnick confirmed that U.S. auto tariffs on South Korea have been reduced to 15% with retrospective effect from November 1. Lutnick also announced the removal of tariffs on airplane parts and a move to align Korea’s reciprocal tariff rate with those applied to Japan and the EU.

Hyundai Motor shares climbed nearly 5% and Kia gained about 3% following the news. The broader Kospi index advanced 1.02%, while the small-cap Kosdaq dipped slightly.

Fresh inflation data also shaped sentiment. South Korea’s headline inflation rose 2.4% year-on-year in November, slightly above expectations. Core inflation increased 2%, matching October’s pace and reinforcing expectations that the Bank of Korea will keep interest rates on hold after leaving them unchanged at 2.5% last week.

Across the region, Asia-Pacific markets traded mostly higher. Japan’s Nikkei 225 rose 0.54% as financials, energy and basic materials led gains. Robotics maker Fanuc, NGK Insulators and Fujikura were among the top performers. In bond markets, yields on 10-, 20- and 30-year Japanese government bonds surged to their highest levels in more than a decade amid growing speculation of a near-term rate hike.

Australia’s ASX 200 edged up, while Hong Kong’s Hang Seng opened modestly higher. Mainland China’s CSI 300 slipped, though Alibaba gained nearly 3% after launching its Quark AI glasses. In India, the Nifty 50 traded lower, with Bajaj Housing Finance falling over 8% after Bajaj Finance announced it would sell up to 2% of its stake.

Meanwhile, U.S. futures were little changed in early Asian trading after all three major indexes snapped five-day winning streaks. Bitcoin’s 6% slide below $86,000 overnight also weighed on sentiment, with crypto-linked stocks including Coinbase and Strategy dropping in U.S. trading.

Written by

Faizal

Faizal is an experienced content creator and writer with a strong focus on business trends, economic developments, and emerging opportunities across the Gulf region. His work reflects a keen understanding of evolving markets, industry dynamics, and the factors shaping the region’s business landscape. With a research-driven approach, Faizal transforms complex market developments into clear, informative, and actionable insights for professionals, entrepreneurs, and business leaders. His content aims to provide valuable perspectives on key economic trends and developments influencing businesses across the Gulf.