Seoul: South Korean stocks climbed to their highest level in approximately three months on Thursday, buoyed by gains in tech and auto shares amid rising hopes for an exemption from U.S. tariffs. Concurrently, the local currency appreciated against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 34.78 points, or 1.36 percent, closing at 2,583.17. This marks the continuation of a three-session winning streak and the highest level since November 4, 2024, when the index concluded at 2,588.97. Trade volume was notably high, with 669.19 million shares exchanged, valued at 16.82 trillion won (US$11.61 billion). The market saw 571 stocks rise against 309 decliners.
Institutional investors amassed a net 656.27 billion won in local shares, while foreign and retail investors offloaded shares worth a net 102.86 billion won and 601.93 billion won, respectively. The index started the day strong and continued to rise, despite U.S. data indicating robust inflation, which led to speculation that the Federal Reserve might postpone interest rate cuts.
Investors were encouraged by U.S. House of Representatives Speaker Mike Johnson's statement that President Donald Trump is considering tariff exemptions for the auto and pharmaceutical industries. Additionally, attention is focused on discussions between Trump and Russian President Vladimir Putin regarding potential resolutions to the Russia-Ukraine conflict.
In the Seoul market, tech and auto stocks were at the forefront of the index's upward movement. Samsung Electronics, a market leader, inched up by 0.18 percent to 55,900 won, and chip manufacturer SK hynix saw a significant surge of 1.81 percent to 202,500 won. LG Energy Solution, a prominent electric vehicle battery producer, soared by 3.1 percent to 349,000 won. Leading automaker Hyundai Motor rose by 4.24 percent to 206,500 won, while its sister company Kia increased by 3.27 percent to 94,700 won. Top steelmaker POSCO Holdings experienced a rebound, rising 4.34 percent to 240,500 won after recent declines.
In the bio sector, the performance was mixed. Samsung Biologics, a leading bio firm, rose by 1.3 percent to 1,172,000 won, whereas Celltrion fell by 0.11 percent to 178,500 won. Among the decliners, Naver, a leading portal operator, decreased by 2 percent to 220,500 won, and Kakao, the operator of the country's leading mobile messenger, fell sharply by 3.81 percent to 40,400 won.
The local currency was valued at 1,447.5 won per U.S. dollar as of 3:30 p.m., marking an increase of 5.9 won from the previous session. Bond prices, which move inversely to yields, closed higher, with the yield on three-year Treasurys dropping 2 basis points to 2.631 percent, while the yield on five-year government bonds decreased by 1.2 basis points to 2.732 percent.