Seoul: South Korean stocks finished more than 1 percent higher Thursday, led by gains of major tech and steel shares, as investor sentiment was buoyed by the revision of the shareholder-friendly Commercial Act and developments in tariff talks with the United States. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 41.21 points, or 1.34 percent, to close at 3,116.27.
According to Yonhap News Agency, trade volume was moderate at 527.53 million shares worth 14.68 trillion won (US$10.79 billion), with winners beating losers 607 to 282. Foreign and institutional investors net purchased 632.39 billion won and 561.11 billion won, respectively, while individuals sold a net 1.23 trillion won worth of stocks. The index opened higher, tracking overnight gains on Wall Street, and maintained the momentum.
Investors welcomed the news that the U.S. will place a lower-than-promised 20 percent tariff on many Vietnamese exports. Vietnam is a major manufacturing hub for Samsung Electronics, LG Electronics, and several other South Korean companies. Investors also closely watched developments in Seoul's trade talks with the United States, with just a week remaining until the July 8 deadline for negotiations. Trade Minister Yeo Han-koo is scheduled to visit the U.S. later this week for last-minute negotiations.
Also boosting investor sentiment was the National Assembly's approval of the revision of the Commercial Act, which calls for expanding corporate directors' fiduciary duty to shareholders to better protect the rights of minority shareholders. Tech and steel shares led the upturn of the index. Market bellwether Samsung Electronics surged 2.22 percent to 62,150 won, while chip giant SK hynix declined 0.72 percent to 277,000 won.
Major battery maker LG Energy Solution soared 2.23 percent to 309,250 won, and No. 1 steelmaker POSCO Holdings spiked 9.72 percent to 316,000 won. Hyundai Steel skyrocketed 16.18 percent to 35,550 won. Leading biotech firm Samsung Biologics advanced 0.59 percent to 1,015,000 won, and top financial firm KB Financial climbed 0.97 percent to 114,600 won.
Nuclear power plant manufacturer Doosan Enerbility jumped 2.27 percent to 63,000 won, and defense giant Hanwha Aerospace increased 0.24 percent to 821,000 won. However, carmakers lost ground. Top carmaker Hyundai Motor went down 0.47 percent to 212,500 won, and its sister Kia Motors fell 0.6 percent to 99,400 won. Top online portal operator Naver rose 0.99 percent to 254,500 won, and Kakao, the operator of the country's dominant mobile messenger, increased 2.39 percent to 60,100 won.
The local currency was quoted at 1,359.4 won against the greenback at 3:30 p.m., down 0.7 won from the previous session.