Morning Brief: Korea chip talks ease tariff worry as yen strengthens and Hormuz options surface

South Korea said on September 4 that chip investments are under discussion with the United States amid tariff concerns. The disclosure was the lead equity-positive development in the premarket, because it lowers the risk of tariff-related derating for semiconductor supply-chain assets and is supportive for U.S. equipment and foundry suppliers if the talks translate into awards. The issue carried broad relevance for QQQ, SPY, XLI, XLY and Korea's KOSPI-linked ^KS11.

The yen has strengthened sharply over the past couple of trading days, pushing USD/JPY back toward the 155.00 level. That level has been an important support this year after holding following intervention-driven gains in late April/early May and again in late July/early August. This time, Bank of Japan current account data released on September 3 showed no sign of major intervention. The move was described as driven by fundamentals, increasing the likelihood of a more sustained rebound. Building expectations for faster BoJ policy tightening, pressure from U.S. Treasury Secretary Scott Bessent, and hawkish comments from BoJ officials including Governor Ueda at the start of the week were cited as drivers. Bessent's recent remark that he has information the market does not have, followed by reports he raised fiscal policy and central bank independence with Finance Minister Katayama at the G20 Finance Ministers and Central Bank Governors meeting, fueled speculation over a potential policy shift.

South Korea's Blue House separately said practical contribution options for the Strait of Hormuz under review include military measures. That raised crude supply disruption risk, with energy-related assets in focus. Military options for the key shipping chokepoint can raise energy prices and inflation hedges, pressuring consumer and transport margins.

On September 3, Federal Reserve Governor Christopher Waller said zero population growth brings down yields and real rates. His comments supported duration and rate-sensitive equities, including XLRE, by signaling easier financial conditions that favor housing and bank lending.

Company-specific news added to the premarket tape. BASF sued Apple in the U.S., alleging infringement of its face authentication patents. A separate report assessed what Nvidia's $13 billion Hugging Face deal means for the world of AI.