Seoul Stocks Climb Almost 1% Amid US-South Korea Tariff Talks
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Synopsis
On April 25, South Korean stocks saw an increase of nearly 1% as investors evaluated the first round of tariff negotiations between South Korea and the US. Meanwhile, the local currency experienced a decline against the US dollar.
Key Takeaways
- South Korean stocks nearly 1% higher.
- First round of tariff talks concluded.
- US dollar sees a rise against the won.
- Technology shares led market gains.
- Automakers faced losses.
Seoul, April 25 (NationPress) South Korean equities closed nearly 1 percent higher on Friday as market participants evaluated the results of the initial round of tariff discussions between Seoul and Washington. The national currency depreciated against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) increased by 23.97 points, or 0.95 percent, finishing at 2,546.3.
Trading activity was subdued with a volume of 386.27 million shares valued at 8.2 trillion won ($5.78 billion), with gainers outnumbering losers at 645 to 238, as reported by Yonhap news agency.
Both institutional and foreign investors collectively acquired a net total of 721.5 billion won in stocks, while individual investors sold a net amount of 773 billion won in shares.
During the initial round of tariff discussions held in Washington on Thursday, South Korea and the United States reached an agreement to pursue a tariff arrangement before the pause on reciprocal tariffs is lifted in early July.
Technology stocks led the overall gains, with SK hynix surging 3.42 percent to 184,400 won and LG Electronics rising 1.85 percent to close at 71,600 won. Market giant Samsung Electronics remained stable at 55,700 won.
Shipbuilders also saw gains, with HD Hyundai Heavy Industries skyrocketing 7.18 percent and Hanwha Ocean climbing 11.12 percent, fueled by expectations of securing U.S. contracts ahead of the anticipated visit by U.S. Secretary of the Navy John Phelan to South Korea next week.
Leading battery manufacturer LG Energy Solution increased 0.59 percent to 343,500 won, while top steel producer POSCO Holdings rose 1.17 percent to 260,000 won.
Conversely, automotive manufacturers faced declines. The leading carmaker Hyundai Motor dipped 0.05 percent to 188,800 won, and its affiliate Kia fell 0.68 percent to finish at 88,200 won.
The local currency was trading at 1,436.5 won against the U.S. dollar at 3:30 p.m., down 1.5 won from the previous day.
Bond prices, which move inversely to yields, rose. The yield on three-year Treasuries decreased by 3.6 basis points to 2.305 percent, while the return on five-year government bonds dropped by 4.1 basis points to 2.403 percent.
