STOCKS | South Korea Warns of Stock-Market Risk Spillovers After U.S. Midterm Elections

South Korean Finance Minister Lee Hyeong-il said at a meeting on the impact of the U.S. midterm elections that South Korea would closely monitor global financial markets and take necessary measures to prevent stock-market performance from overreacting to economic fundamentals. According to Sina Finance, concerns that the election results could lead to tighter U.S. regulation of artificial intelligence have raised the possibility of risk spillovers across global stock markets. The United States is expected to maintain key policies aimed at strengthening domestic industry and supply chains after the elections, while Seoul will respond to any changes in the policy environment. South Korea will ensure the stable implementation of its existing trade agreement with the United States and strengthen communication with the U.S. government, Congress, and state governments.