South Korean shares climb to over 3-month high on tariff optimism
- The benchmark KOSPI closed up 9.34 points, or 0.37%
SEOUL: Round-up of South Korean financial markets:
South Korean shares rose on Wednesday to their highest level since early November on optimism that the country’s impact from US tariffs might not be as severe as previously feared.
The benchmark KOSPI closed up 9.34 points, or 0.37%, at 2,548.39, the highest since November 8, 2024.
Donald Trump, who won the US presidential election in November, is finalising plans for the reciprocal tariffs he has vowed to impose on every country that charges duties on US imports.
“The market is in relief that they are reciprocal tariffs, not universal tariffs. When it comes to the former, South Korea will be of less priority for Trump, as we don’t have tariffs on US imports, other than rice,” said Huh Jae-hwan, economist at Eugene Investment Securities.
South Korea’s acting President Choi Sang-mok on Wednesday said he hoped for a swift agreement within the country’s parliament on an extra budget.
Among index heavyweights, chipmaker Samsung Electronics rose 0.18%, but peer SK Hynix lost 0.40%, while battery maker LG Energy Solution slid 1.31%.
Shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean rose more than 15%, after reports of a US bill to build naval vessels in allied countries.
Of the total 942 traded issues, 333 shares advanced, while 555 declined.
Foreigners were net buyers of shares worth 98.6 billion won ($67.85 million).
The won was quoted at 1,453.4 per dollar on the onshore settlement platform, 0.08% lower than its previous close at 1,452.2.
The most liquid three-year Korean treasury bond yield rose by 2.3 basis points to 2.654%, while the benchmark 10-year yield rose by 4.2 basis points to 2.880%.