Seoul: South Korean stocks on Tuesday closed higher for the second consecutive session, aligning with overnight U.S. stock gains spurred by reduced concerns regarding President Donald Trump's tariff measures. The Korean won depreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 21.52 points, or 0.88 percent, closing at 2,477.41. The trade volume was moderate, with 550.7 million shares valued at 6.4 trillion won (US$4.49 billion), with 707 stocks advancing and 179 declining.
Institutional investors purchased a net 182.8 billion won in stocks, while retail and foreign investors collectively offloaded a net 266.6 billion won. The gains followed Wall Street's positive closure, driven by Trump's announcement of an exemption from reciprocal tariffs for electronics over the weekend.
On Monday, Trump also suggested the possibility of pausing tariffs on auto parts to allow global suppliers more time to relocate production to the U.S. "Trump's indication of a short-term pause of tariffs on auto parts could serve as a temporary positive catalyst," noted Han Ji-young, an analyst at Kiwoom Securities.
In the U.S., the S and P 500 gained 0.79 percent, the Dow Jones Industrial Average increased by 0.78 percent, and the Nasdaq composite rose 0.64 percent. In Seoul, chip and automotive shares were the primary contributors to the gains.
Samsung Electronics, a market leader, rose 0.71 percent to 56,600 won, while chip competitor SK hynix increased by 0.22 percent to 180,600 won. Hyundai Motor surged 4.29 percent to 187,000 won, and Kia advanced 3.37 percent to 85,800 won, following the potential reprieve of auto parts tariffs.
Financial and internet portal shares also rose, with KB Financial adding 2.5 percent to 78,000 won and leading portal operator Naver climbing 0.66 percent to 183,900 won.
The local currency was trading at 1,425.5 won against the U.S. dollar at 3:30 p.m., a decrease of 1.4 won from the previous session. Bond prices, which move inversely to yields, saw an increase. The yield on three-year Treasurys fell 0.9 basis points to 2.399 percent, while the yield on five-year government bonds declined by 1 basis point to 2.499 percent.