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Kospi closes up 1.36% on optimism over U.S. tariff exemption

Published: 13 Feb. 2025, 16:47

SHIN HA-NEE
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,583.17 points on Feb. 13, up 34.78 points, or 1.36 percent, from the previous trading session. [YONHAP]

Stocks rose to the highest level in about three months Thursday, led by gains in tech and auto shares, on growing hopes for an exemption from U.S. tariffs. The local currency's value rose against the dollar.

The Kospi added 34.78 points, or 1.36 percent, to close at 2,583.17, extending a winning streak to a third session.

It marked the highest level since Nov. 4, 2024, when the index finished at 2,588.97.

Trade volume was heavy at 669.19 million shares worth 16.82 trillion won ($11.61 billion), with winners outnumbering losers 571 to 309.

Institutions bought a net 656.27 billion won worth of local shares, while foreign and retail investors sold a net 102.86 billion won and 601.93 billion won worth of shares, respectively.

The index opened higher and had risen further, though U.S. data showing strong inflation led to speculation that the Federal Reserve would delay interest rate cuts.

Investors welcomed news that U.S. House of Representatives Speaker Mike Johnson said he believes President Donald Trump is considering exemptions to reciprocal tariffs for the auto and pharmaceutical industries.

Eyes are also on talks between Trump and Russian President Vladimir Putin on ways to end the Russia-Ukraine war.

In Seoul, tech and auto shares led the upturn of the index.

Samsung Electronics added 0.18 percent to 55,900 won, and SK hynix surged 1.81 percent to 202,500 won.

EV battery maker LG Energy Solution soared 3.1 percent to 349,000 won.

Hyundai Motor went up 4.24 percent to 206,500 won, and Kia jumped 3.27 percent to 94,700 won.

Major bio shares traded mixed. Samsung Biologics climbed 1.3 percent to 1,172,000 won, while Celltrion lost 0.11 percent to 178,500 won.

Among decliners, Naver fell 2 percent to 220,500 won, and Kakao tumbled 3.81 percent to 40,400 won.

The local currency was quoted at 1,447.5 won against the greenback at 3:30 p.m., up 5.9 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. Three-year government bond yields fell 2.1 basis points to 2.631 percent, while the return on the benchmark 10-year U.S. government bonds gained 9.7 basis points to 4.625 percent.

BY SHIN HA-NEE, YONHAP [[email protected]]