Seoul: South Korean stocks surpassed the 3,200-point line for the first time in nearly four years Monday on hopes for stimulus packages, including cash handouts, amid U.S. President Donald Trump's renewed tariff threats. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 26.26 points, or 0.83 percent, to close at 3,202.03. It is the highest closing since Sept. 6, 2021, when the index ended at 3,203.33.
According to Yonhap News Agency, trade volume was moderate at 439.6 million shares worth 11.4 trillion won (US$8.25 billion), with gainers beating decliners 528 to 361. Foreign investors purchased a net 348.3 billion won worth of shares, while institutions sold off a net 94.8 billion won and individual investors offloaded a net 334.9 billion won.
On Saturday (U.S. time), Trump announced he has sent letters to key trade partners, including the European Union and Mexico, threatening duties of 30 percent on imports and setting the negotiations deadline as Aug. 1. Despite the renewed threat, analysts suggest that investors will wait until Aug. 1 to see the results of the negotiations.
Shares of consumer goods and retailers led the rally in anticipation of the planned distribution of government-led cash handouts. Major retailers Lotte Shopping and Shinsegae rose 3.07 percent to 80,500 won and 6.57 percent to 197,800 won, respectively. Leading beauty brand AmorePacific increased 5.12 percent to 139,600 won, and LG H and H climbed 2.88 percent to 339,000 won.
In the automotive sector, top carmaker Hyundai Motor saw a rise of 4.33 percent to 217,000 won, and its sister company Kia advanced 2.18 percent to 103,000 won. In the insurance sector, Samsung Fire and Marine Insurance soared 9.51 percent to 518,000 won, and Hyundai Marine and Fire Insurance jumped 6.7 percent to 30,250 won.
Chip giant SK hynix, the second-biggest share in terms of market value, rose 1.87 percent to a record 300,000 won, driven by U.S. tech behemoth Nvidia's recent rally. However, leading biotech firm Samsung Biologics dropped 1.42 percent to 1,042,000 won, and Celltrion declined 0.9 percent to 177,000 won. Tech giant Samsung Electronics fell slightly by 0.16 percent to 62,500 won.
The local currency was quoted at 1,381.2 won against the greenback at 3:30 p.m., down 5.8 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 2.6 basis points to 2.474 percent, and the return on the benchmark five-year government bonds increased 4.8 basis points to 2.652 percent.