South Korean shares hit four-year high on hopes of US trade deal

SEOUL: Round-up of South Korean financial markets:

South Korean benchmark rose on Tuesday to their highest level in four years, as optimism grew around U.S. trade negotiations ahead of an August 1 deadline for higher tariffs.

The benchmark KOSPI ended the session up 21.05 points, or 0.66%, at 3,230.57, its highest closing level since August 10, 2021.

Korean Finance Minister Koo Yun-cheol said on Tuesday he would seek a mutually beneficial trade deal when he meets U.S. Treasury Secretary Scott Bessent for talks this week, just days before an August 1 deadline expires to avoid punishing tariffs.

“Trade uncertainty is easing after the U.S. signed a deal with Europe and the possibility increased that the deadline will be extended for China,” said Seo Sang-young, an analyst at Mirae Asset Securities.

Among index heavyweights, chipmaker Samsung Electronics rose 0.28%, while peer SK Hynix gained 0.19%. Battery maker LG Energy Solution climbed 3.02%.

Hyundai Motor and sister automaker Kia Corp were down 0.23% and up 0.19%, respectively. Steelmaker POSCO Holdings shed 2.01%, while drugmaker Samsung BioLogics rose 1.97%.

Of the total 935 traded issues, 469 shares advanced, while 411 declined.

Foreigners were net buyers of shares worth 605.4 billion won ($434.46 million).

The won was quoted at 1,393.5 per dollar on the onshore settlement platform, 0.32% lower than its previous close at 1,389.1.

The most liquid three-year Korean treasury bond yield fell by 0.3 basis point to 2.457%, while the benchmark 10-year yield fell by 2.9 basis points to 2.832%.