Seoul: South Korean stocks finished almost unchanged Monday amid concerns that Donald Trump's pledge to impose sweeping tariffs may trigger a global tariff war. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.65 point, or 0.03 percent, to close at 2,521.27.
According to Yonhap News Agency, trade volume was moderate at 386.81 million shares worth 10.38 trillion won (US$7.15 billion), with losers outnumbering winners 454 to 414. Foreigners and retail investors sold a net 277.24 billion won and 74 billion won worth of local shares, respectively, while institutions bought a net 266.91 billion won worth of shares.
The index opened markedly lower and fluctuated between positive and negative territory on news that Trump will soon announce a new 25 percent tariff on all steel and aluminum imports into the United States, alongside reciprocal tariffs set to take effect immediately. "New tariff policies by the U.S. government have long been anticipated, though short-term volatility is expected as eyes are also on the U.S.' consumer inflation," Han Ji-young, an expert from Kiwoom Securities, said.
Top-cap shares ended mixed. Market bellwether Samsung Electronics surged 3.54 percent to 55,600 won, while chip giant SK hynix dipped 2.41 percent to 198,100 won. Leading electric vehicle battery maker LG Energy Solution jumped 3.12 percent to 346,500 won, and major chemicals manufacturer LG Chem advanced 1.81 percent to 221,000 won. However, top steelmaker POSCO Holdings decreased 0.84 percent to 237,000 won and Hyundai Steel dived 2.03 percent to 21,700 won.
Carmakers finished lower. Top automaker Hyundai Motor lost 0.55 percent to 199,400 won, and its sister affiliate Kia dropped 1.97 percent to 94,600 won. Major bio shares lost ground as well, with Samsung Biologics sinking 2.59 percent to 1,130,000 won, and Celltrion sliding 0.33 percent to 179,000 won.
Kakao, the operator of the country's top mobile messenger, dipped 4.49 percent to 42,500 won, while No. 1 portal operator Naver rose 0.89 percent to 227,500 won. The local currency was quoted at 1,451.2 won against the greenback at 3:30 p.m., down 3.4 won from the previous session.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys rose 0.3 basis point to 2.638 percent, while the return on the benchmark five-year government bonds lost 0.6 basis point to end at 2.713 percent.