Seoul: South Korean stocks experienced a rise for the second day in a row as market sentiment improved following U.S. President Donald Trump's decision to ease some tariffs on Canada and Mexico. The Korean won also saw significant gains against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) increased by 18.03 points, or 0.7 percent, closing at 2,576.16. The trade volume was moderate, with 600.4 million shares exchanged, valued at 11.1 trillion won (approximately US$7.7 billion). The number of gainers surpassed losers, with 485 stocks rising compared to 392 falling.
Foreign investors and institutions were net buyers, acquiring local shares worth 138.2 billion won and 155.7 billion won, respectively. In contrast, retail investors sold shares amounting to 369.1 billion won. This positive momentum was mirrored in the U.S. markets, where major indices saw recovery as the U.S. administration delayed new auto duties on Mexico and Canada and indicated a willingness to engage in further tariff discussions.
Lee Kyoung-min, an analyst at Daishin Securities, noted, "Market uncertainties seem to have peaked out as the U.S. administration opened rooms for compromise on its tariffs on Mexico and Canada."
In Seoul, the automotive and IT sectors exhibited strength. Hyundai Motor's shares rose 1.49 percent to 197,600 won, and Kia's shares increased by 2.19 percent to 98,000 won. In the technology sector, Naver's shares surged 5.54 percent to 219,000 won, while Kakao's stock climbed 4.64 percent to 45,100 won on optimism about their artificial intelligence ventures.
Financial stocks also performed well, with Meritz Financial gaining 3.84 percent to 127,200 won and Shinhan Financial rising 3.81 percent to 46,350 won. POSCO Holdings in the steel industry saw a significant increase of 6.87 percent to 295,500 won.
The food industry experienced notable gains, driven by announcements of price hikes. Nongshim's shares jumped 10.65 percent to 389,500 won, and CJ Cheiljedang advanced 5.97 percent to 257,500 won.
Samsung Electronics, a major player in the tech sector, saw a slight increase of 0.56 percent to 54,300 won, while its competitor SK hynix experienced a minor decline of 0.36 percent to 192,400 won. Meanwhile, defense firm Hanwha Aerospace and shipbuilder Hanwha Ocean reported declines of 2.45 percent to 678,000 won and 0.99 percent to 79,700 won, respectively.
The Korean won was trading at 1,442.4 against the U.S. dollar, an increase of 12.1 won from the previous session. In the bond market, prices fell, resulting in higher yields, with the yield on three-year Treasurys rising 2.9 basis points to 2.594 percent, and the five-year government bonds yield increasing by 2.6 basis points to 2.704 percent.