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Kospi rises to highest in a month on positive sentiment ahead of tariff talks

Published: 23 Apr. 2025, 16:22

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,525.56 points on April 23, up 38.92 points, or 1.57 percent, from the previous trading session. [NEWS1]

Shares rose to the highest level in about a month on Wednesday as investors harbored expectations for upcoming tariff talks with the United States, as well as for easing Sino-U.S. trade tensions. The won remained flat against the dollar.

The Kospi added 38.92 points, or 1.57 percent, to close at 2,525.56, which was the highest level since March 28, when the index finished at 2,557.98.

Trade volume was moderate at 529.94 million shares worth 7.67 trillion won ($5.39 billion), with winners beating losers 627 to 254.

Institutions purchased a net 686.07 billion won worth of stocks, while individuals and foreigners shed 549 billion won and 196.71 billion won worth of shares, respectively.

The index opened markedly higher, tracking Wall Street gains, and had maintained the momentum throughout the session.

Investors welcomed the news that U.S. Treasury Secretary Scott Bessent said he expected the trade war with China to de-escalate and a deal would be reached.

Eyes are also on the tariff talks to be held in Washington on Thursday, following the Donald Trump administration's announcement of a 90-day pause on the 25 percent reciprocal tariffs on Korean imports.

Industry Minister Ahn Duk-geun told reporters upon heading for Washington that the country will seek "a swift solution" over auto tariffs, and have consultations over trade, shipbuilding and energy cooperation, among other issues, "in a calm and prudent manner."

Tech shares led the upturn of the index.

Tech giant Samsung Electronics rose 1.27 percent to 55,700 won, and its rival SK hynix surged 4.14 percent to 181,000 won.

Major battery maker LG Energy Solution spiked 5.12 percent to 349,000 won, and leading steelmaker Posco Holdings climbed 3.17 percent to 260,000 won.

Industry leader Hyundai Motor advanced 2.37 percent to 190,000 won, and its sister Kia soared 3.69 percent to 90,000 won.

But leading biotech firm Samsung Biologics fell 0.84 percent to 1.06 million won, and top online portal operator Naver shed 0.41 percent to 192,900 won.

The local currency was quoted at 1,420.6 won against the greenback at 3:30 p.m., unchanged from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys rose 1.2 basis points to 2.34 percent, and the return on the 10-year U.S. government bonds fell 1.4 basis points to 4.4 percent.

Yonhap