Seoul: South Korean stocks surpassed the 3,200-point line for the first time in nearly four years Monday on hopes for stimulus packages, including cash handouts, amid U.S. President Donald Trump's renewed tariff threats. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 26.26 points, or 0.83 percent, to close at 3,202.03. It is the highest closing since September 6, 2021, when the index ended at 3,203.33.
According to Yonhap News Agency, trade volume was moderate at 439.6 million shares worth 11.4 trillion won (US$8.25 billion), with gainers beating decliners 528 to 361. Foreigners scooped up a net 348.3 billion won worth of shares, while institutions dumped a net 94.8 billion won and individual investors sold a net 334.9 billion won. On Saturday (U.S. time), Trump said he has sent letters to key trade partners, including the European Union and Mexico, threatening duties of 30 percent on imports and setting the negotiations deadline as August 1. Despite the renewed threat, analysts noted that investors will wait until August 1 to see the results of the negotiations.
Shares of consumer goods and retailers led the rally ahead of the planned distribution of the government-led cash handouts. Major retailers Lotte Shopping and Shinsegae rose 3.07 percent to 80,500 won and 6.57 percent to 197,800 won, respectively. Leading beauty brand AmorePacific went up 5.12 percent to 139,600 won, and LG H and H increased 2.88 percent to 339,000 won.
Top carmaker Hyundai Motor rose 4.33 percent to 217,000 won, and its sister Kia advanced 2.18 percent to 103,000 won. Leading non-life insurer Samsung Fire and Marine Insurance soared 9.51 percent to 518,000 won, and Hyundai Marine and Fire Insurance vaulted 6.7 percent to 30,250 won.
However, leading biotech firm Samsung dropped 1.42 percent to 1,042,000 won, and Celltrion declined 0.9 percent to 177,000 won. Tech giant Samsung Electronics retreated 0.16 percent to 62,500 won. The local currency was quoted at 1,381.2 won against the greenback at 3:30 p.m., down 5.8 won from the previous session.