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Kospi opens higher on hopes for U.S.-China trade deal

Published: 12 May. 2025, 10:40

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on May 12. [NEWS1]

Shares kicked off higher Monday as the United States and China wrapped up their first high-level tariff negotiations, boosting hopes the two countries may reach a trade deal.

The Kospi added 14.93 points, or 0.58 percent, to 2,592.20 in the first 15 minutes of trading.

Washington and Beijing held a two-day trade dialogue in Geneva from Saturday to discuss tariff and other trade issues.

Both sides have yet to issue an official statement on the results of the talks, but U.S. Treasury Secretary Scott Bessent has said a deal had been reached with China to cut the U.S. trade deficit, touting "substantial progress."

The Chinese delegation also said in a news conference that it held a "constructive" dialogue with the United States.

The two countries are expected to release a joint statement on the details of the negotiations later in the day.

Wall Street closed mixed Friday as investors had remained cautious ahead of the Geneva talks. The S&P 500 lost 0.07 percent, the Dow Jones Industrial Average went down 0.29 percent and the tech-heavy Nasdaq composite was flat.

In Seoul, market heavyweight Samsung Electronics rose 0.46 percent, and its chipmaking rival SK hynix jumped 2.52 percent.

Top automaker Hyundai Motor climbed 1.16 percent, and leading shipbuilder HD Hyundai Heavy advanced 1.94 percent.

Major plant constructor Doosan Enerbility jumped 7 percent after sliding last week due to a delay in Korea's nuclear power plant deal with the Czech Republic.

On the other hand, Samsung Biologics dropped 2.4 percent, and Celltrion slid 4.05 percent.

Defense giant Hanwha Aerospace also lost 2.82 percent.

The local currency was trading at 1,394 won against the dollar at 9:15 a.m., up 6 won from the previous session.

Yonhap