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Kospi closes down 0.07% ahead of U.S. tariff negotiations

Published: 22 Apr. 2025, 19:05 Updated: 22 Apr. 2025, 19:14

Currency traders watch monitors near a screen showing the Kospi, top left, and the foreign exchange rate between the dollar and Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in central Seoul on April 22. [AP/YONHAP]

Korean stocks snapped their three-day rise on Tuesday on heightened uncertainties ahead of Seoul's tariff negotiations with Washington later this week. The Korean won was trading higher against the dollar.

The Kospi lost 1.78 points, or 0.07 percent, to close at 2,486.64, ending its three-day losing streak.

Trade volume was moderate at 408 million shares worth 6.1 trillion won ($4.3 billion), with winners slightly outnumbering losers 460 to 414.

Foreigners unloaded 243 billion won worth of local shares, while retail investors purchased 166.4 billion won.

Overnight, Wall Street lost ground as U.S. President Donald Trump ramped up criticism of Federal Reserve Chair Jerome Powell, saying the U.S. economy could slow down unless the Fed immediately lowers its interest rate.

In Seoul, investors remained cautious on lingering uncertainties ahead of Korea's planned tariff negotiations with the United States this week and the beginning of the corporate earnings season, analysts said.

Korea will hold "2+2" trade consultations with the White House, attended by the countries' finance and trade chiefs, on Thursday to discuss tariff issues.

The Trump administration slapped Seoul with 25 percent reciprocal tariffs earlier this month, though it has paused implementation for 90 days.

Market bellwether Samsung Electronics lost 0.72 percent to 55,000 won, and chip giant SK hynix pulled back 1.59 percent to 173,800 won.

Top automaker Hyundai Motor dropped 0.91 percent to 185,600 won, and its sister Kia went down 1.36 percent to 86,800 won.

Krafton, the developer of hit game PUBG: Battlegrounds, also declined 1.43 percent to 379,000 won.

On the other hand, leading shipbuilder HD Hyundai Heavy jumped 3.27 percent to 363,500 won, and its rival Hanwha Ocean gained 1.41 percent to 79,000 won.

Internet portal operator Naver soared 3.31 percent to 193,700 won, and Kakao, the operator of the country's dominant mobile messenger, went up 0.77 percent to 39,210 won.

The local currency was quoted at 1,420.6 won against the U.S. dollar at 3:30 a.m., up 1.5 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys dropped 0.1 basis point to 2.330 percent, and the return on the benchmark five-year government bonds was unchanged at 2.441 percent.

Yonhap