Seoul: South Korean stocks opened slightly higher Monday, despite U.S. losses, as investors went bargain hunting following a steep fall last week. The benchmark Korea Composite Stock Price Index (KOSPI) rose 5.5 points, or 0.18 percent, to 3,124.91 in the first 15 minutes of trading.
According to Yonhap News Agency, the KOSPI experienced a significant decline on Friday, marking the steepest drop in nearly four months. This was primarily due to investor concerns over the government's tax revision proposal aimed at increasing taxes on corporations and stock investors. Meanwhile, Wall Street faced challenges last week, driven by fears of an economic recession following weaker-than-expected U.S. jobs data. There were also reactions to U.S. President Donald Trump's announcement regarding the increase of the reciprocal tariff rate for some countries, including Switzerland. The Dow Jones Industrial Average ended 1.23 percent lower on Friday, with the tech-heavy Nasdaq composite dropping 2.24 percent and the S and P 500 index falling 1.6 percent.
In Seoul, major stocks showed a mixed performance. Market leader Samsung Electronics saw a rise of 1.02 percent, whereas chip giant SK hynix experienced a decrease of 0.97 percent. Internet portal operator Naver increased by 1.78 percent, and Kakao, the operator of the nation's leading mobile messenger, surged by 4.32 percent. Notably, leading nuclear power plant builder Doosan Enerbility spiked by 3.91 percent. Major automaker Kia expanded by 0.89 percent, while local industry leader Hyundai Motor remained unchanged.
Conversely, shipbuilders encountered significant declines following last week's rally, which was spurred by South Korea's pledge to invest US$150 billion in the U.S. shipbuilding industry as part of a tariff agreement with the Trump administration. HD Hyundai Heavy fell by 3.46 percent, and Hanwha Ocean dropped by 4.51 percent. Additionally, leading battery manufacturer LG Energy Solution decreased by 0.67 percent, and defense company Hanwha Aerospace dipped by 0.64 percent.
The local currency was trading at 1,387.7 won against the greenback at 9:15 a.m., showing a considerable rise of 13.7 won from the previous session.