Seoul: South Korean stocks ended more than 1 percent higher Monday as the United States and China wrapped up their first high-level tariff negotiations, boosting hopes the two countries may reach a trade deal. The local currency was weak against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 30.06 points, or 1.17 percent, to close at 2,607.33. Trade volume was moderate at 406.5 million shares worth 8.45 trillion won (US$6 billion), with winners outnumbering losers 659 to 240.
Institutions were the main buyers, purchasing 342.78 billion won worth of local shares, while foreigners and retail investors sold 7.5 billion won and 390 billion won, respectively. Experts said the KOSPI gained ground on hopes for a possible trade agreement between the U.S. and China in the near future, which is expected to help ease tensions in the global trade market sparked by U.S. tariffs.
Washington and Beijing held trade dialogue in Geneva on Saturday and Sunday (local time) to discuss tariffs and other trade issues. Both sides have yet to issue an official statement on the results of the talks, but U.S. Treasury Secretary Scott Bessent has said a deal had been reached with China to cut the U.S. trade deficit, touting "substantial progress."
The Chinese delegation also said in a news conference that it held a "constructive" dialogue with the U.S. The two countries are expected to release a joint statement on the details of the negotiations later in the day.