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Kospi gains 0.55% on hopes of U.S.-China trade deal

Published: 07 May. 2025, 17:22 Updated: 07 May. 2025, 17:38

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,573.80 points on May 7, up 14.01 points, or 0.55 percent, from the previous trading session. [NEWS1]

Shares rose for the second consecutive session on Wednesday, driven by hopes for U.S.-China trade negotiations. The won rose to a five-month high against the dollar.

The Kospi added 14.01 points, or 0.55 percent, to close at 2,573.8, following a 0.12 percent gain on Friday. The local financial market closed on Monday and Tuesday for the Children's Day and Buddha's Birthday holidays.

Trade volume was moderate at 538.5 million shares worth 8.79 trillion won ($6.29 billion), with gainers closely outnumbering decliners 460 to 415.

Institutions bought a net 348.6 billion won worth of stocks and institutions scooped up a net 87.3 billion won, while individuals dumped a net 464.7 billion won.

Investors were buoyed by the U.S.-China trade talks scheduled for this weekend in Switzerland. U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng will lead their respective negotiations teams.

In Seoul, tech, shipbuilding, tourism and defense shares drove the daily increase.

Tech giant Samsung Electronics rose 0.55 percent to 54,600 won, and its chipmaking rival SK hynix advanced 2.58 percent to 190,800 won.

HD Korea Shipbuilding & Offshore Engineering rose 0.9 percent to 280,000 won, and Hanwha Ocean went up 1.9 percent to 80,400 won.

A stronger local currency pushed up stocks of air carriers and travel agencies. Flag carrier Korean Air soared 7.86 percent to 22,650 won, and Hana Tour Service jumped 3.9 percent to 53,300 won.

Top defense firm Hanwha Aerospace vaulted 8.8 percent to 890,000 won, and LIG Nex1 added 1.97 percent to 336,500 won.

However, bio shares went south as leading pharma Celltrion dropped 1.29 percent to 160,300 won, and Samsung Biologics declined 4.06 percent to 1.04 million won.

The local currency was trading at 1,398 won against the dollar at 3:30 p.m., up 7.3 won from the previous session. It marked the highest level since Nov. 30, 2024, when the currency was quoted at 1,394.7 won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 2.9 basis points to 2.25 percent, and the return on the five-year government bonds dropped 1.5 basis points to 2.379 percent.

Yonhap