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Shares rise more than 1 percent as tariff concerns ease

Published: 22 Jan. 2025, 16:31

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,547.06 points on Jan. 22, up 29.03 points, or 1.15 percent, from the previous trading session. [NEWS1]

Shares rallied more than 1 percent Wednesday to their highest in more than two months on eased U.S. tariff concerns. The won rose in value against the dollar.

The Kospi gained 29.03 points, or 1.15 percent, to close at 2,547.06, ending a three-session losing streak.

It also reached its highest closing price since Nov. 8, when the index finished at 2,561.15.

Trade volume was moderate at 570.7 million shares worth 10.8 trillion won ($7.51 billion), with decliners beating gainers 479 to 402.

Offshore investors scooped up a net 355 billion won, snapping their three-day selling streak.

Institutional investors also lent support to the rally by purchasing a net 411 billion won, while individuals sold a net 827.6 billion won.

Analysts said investors focused on U.S. President Donald Trump's better-than-feared trade policies on his first day in office. He had warned that tariffs on Canadian and Mexican goods could take effect Feb. 1 but stopped short of laying out detailed plans and other protectionist policies against trade partners.

Most shares closed higher across the board.

Samsung Electronics rose 1.5 percent to 54,300 won, and its chipmaking rival, SK hynix, jumped 3.44 percent to 225,500 won.

Carmaker Hyundai Motor climbed 0.97 percent to 208,500 won, while its sister Kia surged 1.98 percent to 103,000 won.

Battery makers, which had suffered a sharp loss the previous day, rebounded as industry leader LG Energy Solution rose 1.55 percent to 360,000 won and Posco Future M vaulted 3.56 percent to 145,400 won.

Bank shares were also strong with Hana Financial Group climbing 1.21 percent to 58,700 won and KB Financial Group soaring 0.56 percent to 89,400 won.

But HD Hyundai dipped 3.98 percent to 314,000 won, and Hanwha Ocean fell 3.29 percent to 52,900 won.

The local currency was trading at 1,437.6 won against the greenback at 3:30 p.m., down 1.9 won from the previous session.

Bond prices, which move inversely to yields, closed higher. Three-year government bond yields fell 0.3 basis points to 2.577 percent, while the return on the benchmark 10-year U.S. government bonds dropped by 4.3 basis points to 4.583 percent.

BY KIM JU-YEON, YONHAP [[email protected]]