Seoul: South Korean stocks snapped their three-day rise on Tuesday due to heightened uncertainties ahead of Seoul's tariff negotiations with Washington later this week. The Korean won, however, was trading higher against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) declined by 1.78 points, or 0.07 percent, closing at 2,486.64, thus ending its streak of gains. The trade volume was moderate, with 408 million shares exchanged, valued at 6.1 trillion won (US$4.3 billion), where winners slightly outnumbered losers 460 to 414.
Foreign investors sold off 243 billion won worth of local shares, while retail investors bought shares worth 166.4 billion won. Meanwhile, Wall Street experienced a downturn as President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, suggesting that the U.S. economy might slow unless the Fed lowers its interest rates promptly.
In Seoul, investor sentiment remained cautious due to the uncertainties surrounding South Korea's upcoming tariff negotiations with the U.S. and the onset of the corporate earnings season. South Korea and the U.S. are set to hold "2+2 trade consultations" on Thursday (U.S. time), involving their finance and trade ministers to discuss tariff matters.
Earlier this month, the Trump administration imposed 25 percent reciprocal tariffs on Seoul, although their implementation has been paused for 90 days. Major firms saw mixed performances; Samsung Electronics dropped 0.72 percent to 55,000 won, and SK hynix declined by 1.59 percent to 173,800 won. Hyundai Motor fell by 0.91 percent to 185,600 won, while Kia decreased 1.36 percent to 86,800 won. Krafton, known for its popular game PUBG: Battlegrounds, decreased by 1.43 percent to 379,000 won.
Conversely, HD Hyundai Heavy, a leading shipbuilder, surged 3.27 percent to 363,500 won, and its competitor Hanwha Ocean rose by 1.41 percent to 79,000 won. Internet giant Naver increased by 3.31 percent to 193,700 won, and Kakao, the dominant mobile messenger operator in the country, went up 0.77 percent to 39,210 won.
The local currency was valued at 1,420.6 won against the U.S. dollar at 3:30 a.m., an increase of 1.5 won from the previous session.