South Korean shares set to snap 3-week decline on tariff negotiation hopes
- The benchmark KOSPI added 6.89 points, or 0.28%, to 2,477.30
SEOUL: Round-up of South Korean financial markets:
South Korean shares slightly higher as central bank holds rates
South Korean shares rose on Friday and were set to snap a three-week losing run, while investors focussed on developments around US tariff negotiations.
The benchmark KOSPI added 6.89 points, or 0.28%, to 2,477.30 as of 0246 GMT, setting the index on track for a weekly gain of 1.9%.
US President Donald Trump said on Thursday he expects to make a trade deal with China, while his administration started talks with Japan this week and plans to hold meetings with South Korea next week.
South Korea’s government proposed a supplementary 12.2 trillion won ($8.61 billion) budget on Friday to counter the heightening risks to economic growth in the face of a global trade war and domestic political uncertainty.
The Bank of Korea signalled it would cut rates in May and kept the door wide open to further monetary easing this year.
Automakers, seen as one of the most vulnerable to US tariffs, were the biggest gainers. Hyundai Motor gained 1.60% and sister automaker Kia added 1.88%.
E-commerce firms also advanced, biopharmaceutical and battery manufacturers declined, while chipmakers were mixed.
Foreigners were net sellers of shares worth 111 billion won.
The won was quoted at 1,421.4 per dollar on the onshore settlement platform, 0.34% lower than Thursday’s close at 1,416.6.
In the money and debt markets, June futures on three-year treasury bonds rose 0.11 point to 107.60.
The most liquid three-year Korean treasury bond yield fell 2.9 basis points to 2.355%, while the benchmark 10-year yield lost 1.7 basis points to 2.612%.