Synopsis
On April 10, South Korea's stock market surged due to the US administration's halt on reciprocal tariffs, boosting investor confidence and strengthening the Korean won against the US dollar.Key Takeaways
- Seoul stocks rose significantly on tariff news.
- The KOSPI index rebounded sharply.
- US market gains influenced Korean sentiment.
- Major companies saw substantial stock increases.
- The Korean won strengthened against the dollar.
Seoul, April 10 (NationPress) South Korean equities experienced a significant uptick on Thursday following the US administration's temporary suspension of reciprocal tariffs, which positively influenced market sentiment. The Korean won appreciated notably against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) soared by 126.94 points, or 5.53 percent, reaching 2,420.64 by 11:20 a.m., marking a sharp recovery from a 17-month low observed the previous day, according to reports from Yonhap news agency.
In light of the substantial increase, the bourse operator implemented a sidecar order at 9:06 a.m., pausing program purchases for five minutes after the KOSPI 200 futures jumped 5 percent within a minute.
Overnight, Wall Street experienced one of its strongest days since the 2008 global financial crisis, with the S&P 500 rising by 9.5 percent, the Dow Jones Industrial Average climbing 7.87 percent, and the tech-heavy Nasdaq composite surging 12.16 percent.
This rally was prompted by U.S. President Donald Trump reducing new tariffs on South Korea and other trade partners to 10 percent, in what he referred to as a 90-day pause.
Trump stated that this decision followed outreach to US trade officials for negotiations and noted that there was no retaliation against the reciprocal tariffs.
In contrast, Trump raised duties on China to 125 percent after Beijing announced a plan to increase tariffs on US goods to 84 percent in retaliation.
In Seoul, the market leader Samsung Electronics rose by 5.09 percent, while its competitor SK hynix surged by 11.21 percent.
Leading battery manufacturer LG Energy Solution increased by 8.12 percent, and top automobile maker Hyundai Motor advanced by 6.91 percent.
Major shipbuilders HD Hyundai Heavy and Hanwha Ocean saw increases of 9.71 percent and 6.27 percent, respectively.
Top container shipping firm HMM rose by 6.95 percent, while significant defense contractor Hanwha Aerospace climbed 5.93 percent.
Financial stocks also experienced substantial gains, with KB Financial jumping 6.21 percent and Shinhan Financial rising 5.05 percent.
The local currency was trading at 1,456.6 won against the greenback at 11:20 a.m., an increase of 27.5 won from the prior session.
