Outcome of Trump-Xi summit and impact on Korean economy

May is being defined by the “modest” outcome of the summit between U.S. President Donald Trump and Chinese President Xi Jinping, unusually hot days, the prolonged Middle East war and growing economic pains around the globe. The global community breathed a sigh of relief that the two superpowers managed to avoid the Thucydides Trap. There were intense expectations for the Trump-Xi summit to deliver a promise to end the war in the Middle East, on top of addressing the 5Bs (Boeing, beef, soybeans, Board of Trade, and Board of Investment) and the 3Ts (Taiwan, tariffs, and technology). While the two leaders urged Iran to reopen the Strait of Hormuz, they provided no further details, much to the disappointment of the global community. The markets immediately reacted with sharp declines. The KOSPI slid 5 percent, the Nikkei dropped about 2 percent and the Nasdaq composite index also shed 2 percent. The 10-year U.S. Treasury yield surged to more than 4.5 percent. Oil prices jumped to $110 per barrel. With no sign of the reopening of the Strait of Hormuz and an end to the war in sight, furt

Original source: Korea Times