South Korean stock market rise extended into a second session on Wednesday, supported by optimism over US-China trade talks. The Korea Composite Stock Price Index (KOSPI) gained 14.01 points, closing at 2,573.80, up 0.55 percent. This followed a modest 0.12 percent increase on Friday, with markets closed Monday and Tuesday for holidays. Investors responded positively to the announcement of bilateral trade negotiations scheduled in Switzerland. The local currency also strengthened sharply against the US dollar.
Trade volume reached 538.5 million shares, with total turnover standing at 8.79 trillion won, or about $6.29 billion. Gainers narrowly outpaced losers, with 460 stocks rising and 415 falling. Institutional investors led the charge, purchasing a net 348.6 billion won in shares. Foreign investors followed with 87.3 billion won in net buys, while individuals sold off 464.7 billion won. Market sentiment improved notably thanks to the South Korean stock market rise.
Investors welcomed the planned meeting between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. Hopes for easing tensions between the world’s two largest economies lifted confidence across sectors. In Seoul, tech, defense, shipbuilding, and tourism stocks led the market rebound. Samsung Electronics climbed 0.55 percent to 54,600 won, while SK hynix jumped 2.58 percent to 190,800 won. Defense and shipbuilding companies also benefited from the renewed optimism.
HD Korea Shipbuilding advanced 0.9 percent to 280,000 won, and Hanwha Ocean added 1.9 percent to close at 80,400 won. Hanwha Aerospace soared 8.8 percent to 890,000 won, while LIG Nex1 gained nearly 2 percent. Meanwhile, travel-related shares rallied as the stronger won made overseas travel more appealing. Korean Air surged 7.86 percent to 22,650 won, and Hana Tour Service climbed 3.9 percent to 53,300 won. The South Korean stock market rise has clearly lifted investor mood across sectors.
However, pharmaceutical shares moved in the opposite direction, weakening despite broader gains. Celltrion dropped 1.29 percent to 160,300 won, and Samsung Biologics slid 4.06 percent to 1.04 million won. The local currency ended at 1,398 won per US dollar, up 7.3 won from the previous session. This marked its strongest performance since late November 2024. Bond yields fell as well, with three-year Treasurys down 2.9 basis points and five-year bonds declining 1.5 points.
