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Kospi rises almost 1 percent on optimism around U.S.-Japan trade talks

Published: 17 Apr. 2025, 16:41

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,470.41 points on April 17, up 22.98 points, or 0.94 percent, from the previous trading session. [NEWS1]

Shares rose nearly 1 percent Thursday as investors became optimistic about the ongoing trade talks between the United States and Japan. The won rose in value against the dollar.

The Kospi added 22.98 points, or 0.94 percent, to close at 2,470.41, rebounding from a 1.21 percent drop the previous day.

Trade volume was moderate at 589.6 million shares worth 6.5 trillion won ($4.58 billion) with winners beating losers 638 to 225.

Institutions purchased a net 346.2 billion won worth of stocks while foreign and retail investors sold a net 351.9 billion won and 87.4 billion won, respectively.

Overnight, U.S. President Donald Trump said there was “big progress” in talks to strike a deal for Japan to avoid higher levies.

The Washington-Tokyo trade talks are expected to give indications regarding upcoming negotiations with other allies, including Korea.

However, Wall Street closed sharply lower after U.S. Federal Reserve Chairman Jerome Powell said higher-than-expected tariffs would lead to higher inflation and slower growth and remained pessimistic about a possible rate cut.

Additionally, the Bank of Korea froze its key interest rate at 2.75 percent, citing concerns regarding fluctuating foreign exchange rates and rising household debt amid uncertainty from U.S. tariff policies.

“While Powell's comments weighed on the Korean market, investors were boosted by progress in tariff negotiations with Japan,” said Lee Jae-won, an analyst at Shinhan Securities.

In Seoul, chip firms led the daily gain, overcoming the previous day's sharp drop following the recent U.S. ban on exports of Nvidia's H20 chips to China.

Samsung Electronics rose 0.73 percent to 55,100 won, and its chipmaking rival SK hynix climbed 0.57 percent to 175,000 won.

Food companies and cosmetics makers were also strong. CJ CheilJedang went up 2.53 percent to 243,500 won, and cosmetics brand Amorepacific jumped 3.77 percent to 115,700 won.

Carmakers and battery companies finished mixed.

Top carmaker Hyundai Motor stayed unchanged at 181,700 won, and its sister Kia advanced 0.35 percent to 85,000 won.

Leading battery maker LG Energy Solution dropped 0.15 percent to 342,500 won, while Samsung SDI increased 2.2 percent to 180,900 won.

The local currency was quoted at 1,418.9 won against the dollar at 3:30 p.m., down 7.8 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 3.1 basis points to 2.38 percent, and the return on the benchmark 10-year U.S. government bonds fell 5.8 basis points to 4.28 percent.

Yonhap