Seoul: South Korean stocks finished slightly higher Monday as investors await upcoming tariff negotiations with the United States. The local currency rose against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 5.0 points, or 0.2 percent, to close at 2,488.42, marking its third consecutive day of gains. Trade volume was modest at 423.58 million shares worth 5.18 trillion won (US$3.66 billion), with 499 stocks advancing against 370 decliners.
The market saw individuals and institutions purchasing a net 185.52 billion won and 23.79 billion won worth of shares, respectively, while foreign investors sold a net 288.35 billion won worth of stocks. The index showed limited movement throughout the session, opening slightly lower and remaining within a narrow range.
Investors are closely watching the tariff talks scheduled to take place in Washington on Thursday. This follows the Donald Trump administration's announcement of a 90-day delay on the planned 25 percent reciprocal tariffs on South Korean imports. South Korea is among the first countries to engage in these discussions, after Japan initiated its negotiations last week. Acting President Han Duck-soo acknowledged the challenges ahead, committing to efforts aimed at achieving a "mutually beneficial solution."
In the sector breakdown, tech shares were the primary drivers of the index's upward movement. Samsung Electronics saw an increase of 0.18 percent to 55,400 won, while SK hynix rose 0.91 percent to 176,600 won. Samsung Biologics, a leading biotech firm, experienced significant gains, soaring 2.19 percent to 1.07 million won. Conversely, LG Energy Solution, a major battery manufacturer, declined by 1.63 percent to 332,500 won.
Among automakers, Hyundai Motor inched up 0.05 percent to 187,300 won, and its affiliate Kia climbed 0.8 percent to 88,000 won. Meanwhile, Naver, a top online portal operator, remained stable at 187,500 won, and POSCO Holdings, a leading steelmaker, fell 0.79 percent to 251,000 won.
The local currency strengthened, quoted at 1,419.1 won per U.S. dollar by the close of the session, reflecting an increase of 4.2 won from the previous day. In the bond market, prices rose, resulting in lower yields. The yield on three-year Treasurys dropped 3.1 basis points to 2.331 percent, while the return on five-year government bonds decreased 2.3 basis points to 2.441 percent.