South Korean shares log biggest jump since March 2020 on Trump tariff pause
- KOSPI added 151.36 points, or 6.6%, to close at 2,445.06
SEOUL: Round-up of South Korean financial markets:
South Korean shares on Thursday posted their sharpest rally in more than five years as U.S. President Donald Trump hit a sudden pause on most tariffs.
The benchmark KOSPI added 151.36 points, or 6.6%, to close at 2,445.06, logging the biggest percentage jump since March 24, 2020.
On Wednesday, the blue-chip index fell to more than 17-month low as Trump’s tariffs, including 25% duties on imports from South Korea, took effect.
Earlier in the day, the “sidecar” rule was triggered a second time this week after Monday when futures fell sharply. The rule is activated when futures gain or lose more than 5%.
Meanwhile, in a stunning reversal, Trump on Wednesday announced a 90-day pause on the hefty duties imposed on dozens of trade partners, while raising the China duties to 125%.
The tariff reprieve has provided room for negotiations, South Korea’s top trade envoy Cheong In-kyo said, as the country seeks to reduce the duties through talks.
South Korean shares plunge to 17-month low as US tariff worries dominate
“Stocks rebounded across global financial markets, but not to the levels traded before the initial announcement of the tariffs. Volatility will remain elevated amid negotiation noises,” said Lee Kyoung-min, an analyst at Daishin Securities.
Chipmaker Samsung Electronics rose 6.42% and peer SK Hynix gained 11.03%. Battery maker LG Energy Solution climbed 11.31%.
Hyundai Motor added 5.06% and sister automaker Kia gained 5.25%. Steelmakers and drugmakers also advanced.
Only 47 of the 936 traded issues fell.
Foreigners were net buyers of shares worth 325.2 billion won ($222.96 million), snapping a nine-session selling streak.
The won was quoted at 1,456.4 per dollar on the onshore settlement platform, 1.07% higher than Wednesday’s close.
The most liquid three-year Korean treasury bond yield rose 0.1 basis points to 2.434%. The benchmark 10-year yield fell 3.3 basis points to 2.695%.
Comments
Comments are closed for this article.