Seoul: South Korean stocks finished sharply higher Monday, driven by gains in tech shares, as investor sentiment was buoyed by U.S. President Donald Trump's extension of the deadline for imposing sweeping tariffs on the European Union. The local currency rose against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 52.31 points, or 2.02 percent, to close at 2,644.4, ending a two-day losing streak. This marked the highest level since February 24, when the index finished at 2,645.27. Trade volume was moderate at 374.09 million shares worth 8.26 trillion won (approximately US$6.05 billion), with winners outnumbering losers 633 to 260.
Institutions and foreign investors showed strong interest, purchasing a net 416.98 billion won and 102.16 billion won worth of stocks, respectively, while individual investors sold 500.82 billion won worth of shares. The index opened higher and extended further gains on news that Trump said he would delay imposing 50 percent tariffs on imports from the EU until July 9.
Despite the positive sentiment, concerns linger over U.S. tariff policies, as Trump threatened to impose 25 percent tariffs by the end of next month on smartphones made by Apple, Samsung Electronics Co., and other companies if they are not manufactured in the U.S. Tech shares led the upturn of the index, with market bellwether Samsung Electronics rising 0.92 percent to 54,700 won, and its rival SK hynix advancing 1.5 percent to 203,000 won.
Major battery makers also saw gains, with LG Energy Solution surging 3.73 percent to 278,000 won, and Samsung SDI soaring 3.62 percent to 166,000 won. Leading biotech firm Samsung Biologics spiked 2.66 percent to 1.04 million won, and Celltrion edged up 0.2 percent to 153,000 won.
Top carmaker Hyundai Motor added 1.11 percent to 181,900 won, while Kia Motors increased 1.15 percent to 88,100 won. In the chemical sector, LG Chem climbed 12.91 percent to 187,700 won, and No. 1 steelmaker POSCO Holdings jumped 3.43 percent to 241,500 won. Defense giant Hanwha Aerospace saw a modest increase of 0.36 percent to 833,000 won, and leading financial firm KB Financial moved up 3.03 percent to 102,000 won. Top online portal operator Naver rose 2.68 percent to 188,000 won.
The local currency was quoted at 1,364.4 won against the greenback at 3:30 p.m., up 11.2 won from the previous session.