South Korea stock rally surged Monday after U.S. President Donald Trump extended the deadline for imposing tariffs on the EU. The decision immediately lifted investor sentiment and reversed a two-day decline in the Korean markets. The benchmark KOSPI climbed 52.31 points, or 2.02 percent, to close at 2,644.4. This marked its highest close since February 24, when it ended at 2,645.27. The local currency also strengthened against the U.S. dollar as market optimism spread.
South Korea stock rally gained additional momentum from strong institutional and foreign buying across tech and battery shares. Institutions net bought 416.98 billion won worth of stocks, while foreign investors added 102.16 billion won. In contrast, individual investors sold 500.82 billion won in shares. Overall, trade volume reached 374.09 million shares, worth 8.26 trillion won. Advancers beat decliners by a wide margin, 633 to 260.
News that Trump would delay 50 percent tariffs on EU imports until July 9 helped set the bullish tone. However, concerns remain as he threatened 25 percent tariffs on smartphones not produced in the U.S. That could affect major companies like Apple and Samsung Electronics. Still, the South Korea stock rally held firm throughout the day. Investors focused on the temporary relief rather than the looming trade threats.
Tech shares led the rally, with market leader Samsung Electronics gaining 0.92 percent to 54,700 won. Its chipmaking rival SK hynix advanced 1.5 percent to 203,000 won. Battery stocks also rallied strongly, with LG Energy Solution up 3.73 percent and Samsung SDI climbing 3.62 percent. Biotech names joined the surge as Samsung Biologics rose 2.66 percent and Celltrion edged up 0.2 percent. The South Korea stock rally clearly drew strength from growth sectors.
Other major players posted solid gains across various industries. Hyundai Motor rose 1.11 percent, while Kia Motors added 1.15 percent. LG Chem jumped 12.91 percent and POSCO Holdings surged 3.43 percent. Hanwha Aerospace edged up 0.36 percent and KB Financial climbed 3.03 percent. Naver, South Korea’s top online portal, rose 2.68 percent as tech optimism continued.
The Korean won finished at 1,364.4 per U.S. dollar, up 11.2 won from the previous session. Meanwhile, bond prices closed higher, with yields on both three- and five-year Treasurys inching up slightly. Though tariff worries linger, the South Korea stock rally shows that global trade signals still shape local investor confidence.
