Seoul Stock Market Climbs Nearly 1% Amid Positive US-Japan Trade Negotiations
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Synopsis
Seoul's stock market saw a nearly 1% increase on April 17 as optimism surrounding US-Japan trade negotiations grew, with the local currency hitting a four-month high against the US dollar.
Key Takeaways
- South Korean stocks rose nearly 1% on April 17.
- Investor optimism is linked to US-Japan trade talks.
- KOSPI closed at 2,470.41 after recovering from previous losses.
- Institutions were net buyers while foreign and retail investors sold stocks.
- Semiconductors led gains amid rising investor confidence.
Seoul, April 17 (NationPress) South Korean equities experienced a rise of nearly 1 percent on Thursday as investor sentiment improved regarding the ongoing trade negotiations between the United States and Japan. The national currency reached its highest level against the US dollar in over four months.
The benchmark Korea Composite Stock Price Index (KOSPI) increased by 22.98 points, or 0.94 percent, closing at 2,470.41, marking a recovery from a 1.21 percent decline the previous day, as reported by Yonhap news agency.
Trading volume was moderate at 589.6 million shares, valued at 6.5 trillion won (approximately $4.58 billion), with the number of gaining stocks surpassing losing ones by 638 to 225.
Institutions acquired a net 346.2 billion won worth of shares, while foreign and retail investors sold off 351.9 billion won and 87.4 billion won respectively.
U.S. President Donald Trump remarked on the significant progress in negotiations aimed at preventing Japan from facing higher tariffs.
The trade discussions between Washington and Tokyo are anticipated to provide insights for future negotiations with other partners, including South Korea.
In contrast, Wall Street closed sharply lower after Federal Reserve Chair Jerome Powell indicated that unexpectedly high tariffs could lead to increased inflation and slower economic growth, expressing skepticism about a potential rate cut.
Furthermore, the Bank of Korea maintained the key interest rate at 2.75 percent, citing concerns over volatile foreign exchange rates and rising household debt amid uncertainties stemming from U.S. tariff policies.
“While Powell's remarks had a negative impact on the Korean market, the progress in tariff discussions with Japan provided a boost to investors,” noted Lee Jae-won, an analyst at Shinhan Securities.
In Seoul, the semiconductor sector led the gains, recovering from the previous day's significant decline following the recent U.S. ban on exports of Nvidia's H20 chips to China.
Samsung Electronics, recognized as the world’s largest memory chip producer, saw a rise of 0.73 percent to 55,100 won, while its competitor SK hynix climbed 0.57 percent to 175,000 won.
Food and cosmetics companies also performed strongly. The food giant CJ Cheiljedang increased by 2.53 percent to 243,500 won, while the leading cosmetics brand AmorePacific surged 3.77 percent to 115,700 won.
Performance among car manufacturers and battery firms was mixed. Hyundai Motor, the top automaker, remained steady at 181,700 won, while Kia gained 0.35 percent to 85,000 won.
Leading battery manufacturer LG Energy Solution saw a slight decrease of 0.15 percent to 342,500 won, whereas Samsung SDI rose by 2.2 percent to 180,900 won.
