Seoul: South Korean stocks ended a three-day upward trend on Tuesday due to heightened uncertainties as Seoul gears up for upcoming tariff negotiations with Washington later this week. The Korean won showed a slight increase against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) fell by 1.78 points, or 0.07 percent, closing at 2,486.64, thus breaking its three-day losing streak. The trading volume was moderate, with 408 million shares valued at 6.1 trillion won (approximately US$4.3 billion), with more winners than losers at 460 to 414.
Foreign investors sold off 243 billion won worth of local stocks, while retail investors acquired shares worth 166.4 billion won. On Wall Street, stocks dropped as President Donald Trump criticized Federal Reserve Chair Jerome Powell, warning that the U.S. economy could slow unless the Fed lowers interest rates immediately.
In Seoul, investor caution prevailed amid uncertainties surrounding South Korea's scheduled tariff negotiations with the U.S. this week and the onset of the corporate earnings season, analysts noted. The two nations are set to engage in "2+2 trade consultations," involving finance and trade ministers, on Thursday (U.S. time) to address tariff issues.
Earlier this month, the Trump administration imposed 25 percent reciprocal tariffs on Seoul, though their implementation has been paused for 90 days. During Tuesday's trading session, market leaders like Samsung Electronics and SK hynix saw declines, with Samsung falling 0.72 percent to 55,000 won and SK hynix decreasing by 1.59 percent to 173,800 won.
Similarly, top automakers Hyundai Motor and Kia experienced drops, with Hyundai falling 0.91 percent to 185,600 won and Kia declining by 1.36 percent to 86,800 won. Krafton, the developer behind the popular game PUBG: Battlegrounds, also saw a 1.43 percent decrease to 379,000 won.
Conversely, HD Hyundai Heavy, a leading shipbuilder, rose by 3.27 percent to 363,500 won, while its rival Hanwha Ocean increased by 1.41 percent to 79,000 won. Additionally, internet portal operator Naver surged by 3.31 percent to 193,700 won, and Kakao, the country's leading mobile messenger operator, grew by 0.77 percent to 39,210 won.
The local currency was quoted at 1,420.6 won against the U.S. dollar at 3:30 a.m., marking an increase of 1.5 won from the previous session. Bond prices closed mixed, with the yield on three-year Treasurys decreasing by 0.1 basis point to 2.330 percent, while the return on benchmark five-year government bonds remained steady at 2.441 percent.