Seoul: Seoul shares continued their upward trajectory for the second day, buoyed by gains in technology stocks despite lingering concerns over tariff threats from U.S. President Donald Trump. The Korean won saw a slight increase against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 13.25 points, or 0.41 percent, to close at 3,215.28. The trading volume was moderate, with 415.06 million shares exchanged, valued at 11.94 trillion won (US$8.6 billion). The market saw 510 decliners compared to 364 gainers.
Foreign investors purchased a net 212.29 billion won worth of shares. In contrast, institutions and individual investors offloaded stocks valued at 20.8 billion won and 311.19 billion won, respectively. President Trump has informed key U.S. trading partners of impending tariff increases slated for August 1, unless favorable terms are reached in ongoing trade talks.
"Trump has already sent a letter to South Korea notifying plans to impose 25 percent tariffs on South Korean products starting Aug. 1. The market had already priced in the news, causing no major jitters," stated Lee Kyoung-min, an analyst at Daishin Securities Co.
The performance of large-cap stocks was varied. Samsung Electronics, a market leader, saw its shares climb 1.92 percent to 63,700 won. Hanwha Aerospace, a defense industry firm, experienced a 5.08 percent surge to 848,000 won. Leading shipbuilder HD Hyundai increased by 0.51 percent to 139,000 won, and major shipping firm HMM rose 1.76 percent to 25,950 won.
Conversely, Hyundai Motor, the top carmaker, saw its shares drop by 2.76 percent to 211,000 won, while leading steelmaker POSCO Holdings declined by 0.16 percent to 321,000 won.
The local currency was quoted at 1,380.20 won against the U.S. dollar at 3:30 p.m., marking an increase of 1 won from the previous session. In the bond market, where prices move inversely to yields, bond prices closed higher. The yield on three-year Treasurys fell by 1.1 basis points to 2.463 percent, and the yield on five-year government bonds decreased by 0.8 basis points to 2.644 percent.