New York stocks fall on unstable US-China trade truce…President Lee to announce APEC opening [Morning Briefing]

◆ New York stock market closes lower on unstable US-China trade truce

The three major New York stock indexes closed lower. On the 30th local time, the Dow closed at 47,522.12, down 109.88 points (0.23%) from the previous session. The S&P 500 closed at 6,822.34, down 68.25 points (0.99%), and the Nasdaq closed at 23,581.14, down 377.33 points (1.57%). U.S. President Donald Trump and Chinese President Xi Jinping held a summit in Busan that day. At the summit, the U.S. secured from China a one-year postponement of export control measures on rare earths and a commitment to purchase 25 million t of soybeans over the next three years. China achieved the outcome of lowering fentanyl tariffs by 10 percentage points, from 57% to 47%. While both sides made some concessions and the two countries' trade tensions eased to some extent, the prevailing view remains that the agreement is an unstable trade truce. Expected deterioration in Meta's profitability among big tech also cooled investor sentiment across tech stocks.

◆ President Lee Jae-myung to announce APEC opening…Discusses trade cooperation with other leaders

President Lee Jae-myung will announce the official opening of the Asia-Pacific Economic Cooperation (APEC) Leaders' Meeting in Gyeongju on the 31st. That morning, in his capacity as APEC chair, he will greet leaders from each country visiting Gyeongju for the opening ceremony. Participating in the first session of the leaders' meeting, held under the theme 'Toward a more connected and resilient world,' he will discuss ways to strengthen trade cooperation and mutual investment amid a growing protectionist trend. In addition to economic bodies from the 21 APEC member economies, Khalid, Crown Prince of Abu Dhabi of the United Arab Emirates (UAE), and Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), will attend. After the first session, the president will have lunch with members of the APEC Business Advisory Council (ABAC) to hear recommendations, and in the evening he will attend a welcome banquet hosting APEC member economic leaders, businesspeople, and guests.

◆ Last month, 65% of nationwide jeonse/monthly lease transactions were monthly rent…'Jeonse-to-monthly rent' intensifies

Amid tightened loan regulations and other factors accelerating the shift from jeonse to monthly rent, 65% of nationwide jeonse/monthly lease transactions in September this year were monthly rent. According to September housing statistics released by the Ministry of Land, Infrastructure and Transport on the 31st, nationwide housing sales transactions including non-apartment properties totaled 63,365 transactions in the past month by report date, a 37.0% increase from the previous month. The capital region (31,298 transactions) rose 44.4% compared with the previous month, and the provinces (30,267 transactions) rose 30.5%. Seoul (10,995 transactions) increased 50.8%, with Gangbuk (5,797 transactions) up 47.9% and Gangnam (5,198 transactions) up 54.1%. The four Gangnam districts (Seocho, Gangnam, Songpa, Gangdong) recorded 1,909 transactions, a 30.2% increase. Nationwide apartment transactions in September were 49,665, up 42.4% from the previous month. Seoul (6,796 transactions) rose 63.6%, and the capital region (23,043 transactions) rose 52.4%. Transactions, which had once been dampened by the June 27 loan regulations, reopened over time, and demand for gap investment (buying houses with jeonse deposits) concentrated mainly in non-regulated areas such as Seongdong-gu and Mapo-gu in Seoul. Nationwide jeonse/monthly lease transactions totaled 230,745, up 7.9% from the previous month.

◆ Rain mainly in central and Jeolla regions…daytime high 22°C 'warm'

On Friday the 31st, rain will fall mainly in central regions and the Jeolla area from night into the following morning. Jeju Island will see rain until the morning, and parts of the Seoul metropolitan area, inland northern Gangwon, and northern Chungnam’s western coast may see rain at night. From afternoon to evening, Busan, Ulsan, and the East Coast of North Gyeongsang may see drops of less than 0.1㎜. Expected precipitation amounts are around 5㎜ for Seoul and inland Gyeonggi and Gangwon-do, 5–10㎜ for Incheon and Gyeonggi's western coast, 5–20㎜ for Jeju Island, and 5–30㎜ for the West Sea. Morning lows are forecast at 5–13°C, and daytime highs at 17–22°C. Expect large temperature differences of 10–20°C between day and night mainly inland, so take care of your health. Fine dust concentrations are expected to be 'good' to 'moderate' across all regions. However, southern Gyeonggi and Sejong may be temporarily at 'bad' levels in the morning.

Kim Ye-rang, Hankyung.com reporter yesrang@hankyung.com