A dealing room at Hana Bank in central Seoul on May 12, 2025. (Image courtesy of Yonhap)
SEOUL, May 12 (Korea Bizwire) — South Korean stocks ended more than 1 percent 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 local currency was weak against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 30.06 points, or 1.17 percent, to close at 2,607.33.
Trade volume was moderate at 406.5 million shares worth 8.45 trillion won (US$6 billion), with winners outnumbering losers 659 to 240.
Institutions were the main buyers, purchasing 342.78 billion won worth of local shares, while foreigners and retail investors sold 7.5 billion won and 390 billion won, respectively.
Experts said the KOSPI gained ground on hopes for a possible trade agreement between the U.S. and China in the near future, which is expected to help ease tensions in the global trade market sparked by U.S. tariffs.
Washington and Beijing held trade dialogue in Geneva on Saturday and Sunday (local time) to discuss tariffs 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 U.S.
Shortly after the stock market closed, the U.S. and China issued a joint statement, announcing a 90-day reduction of reciprocal tariffs to allow for further negotiations.
The U.S. will lower its combined 145 percent levies on most Chinese imports to 30 percent by May 14, and China will cut its 125 percent tariffs on U.S. goods to 10 percent, according to the statement.
In Seoul, market heavyweight Samsung Electronics soared 5.11 percent to 57,600 won on bargain hunting, and its chipmaking rival SK hynix advanced 2.58 percent to 195,000 won.
Top automaker Hyundai Motor jumped 3.11 percent to 195,800 won, and its sister, Kia, climbed 3.47 percent to 92,400 won.
Leading battery maker LG Energy Solution gained 1.1 percent to 321,500 won, and major plant constructor Doosan Enerbility surged 3.41 percent to 28,800 won.
On the other hand, the bio sector sharply fell on news that U.S. President Donald Trump plans to sign an executive order lowering prices of prescription drugs.
Samsung Biologics tumbled 4.71 percent to 991,000 won, and Celltrion slid 3.92 percent to 151,800 won.
Major shipbuilders also lost ground, with HD Hyundai Heavy and Hanwha Ocean down 2.06 percent and 4.51 percent to 404,500 won and 76,200 won, respectively. HD Korea Shipbuilding also dropped 3.7 percent to 273,000 won.
Defense giant Hanwha Aerospace also shot down 6.61 percent to 820,000 won.
The local currency was quoted at 1,402.4 won against the greenback at 3:30 p.m., down 2.4 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 increased 0.3 basis point to 2.451 percent.
(Yonhap)
