Friday, August 8, 2025

Foreign Buying Fuels Stock Market Rally as Tariff Deadline Near’

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South Korea’s stock market extended its stock market rally, hitting the highest level in nearly four years. Strong foreign buying helped lift market sentiment despite U.S. tariff threats. Investors showed confidence as trade talks continued between Seoul and Washington.

The Korea Composite Stock Price Index rose by 21.05 points to close at 3,230.57. This marks the fifth consecutive day of gains. The index has now entered a clear stock market rally phase, supported by solid institutional flows.

The market opened slightly lower as investors waited for updates on tariff negotiations. However, strong demand from foreign investors quickly reversed the trend. This shift in momentum signaled growing optimism despite the trade tension.

Total trading volume reached 369.74 million shares, worth 12.66 trillion won. Advancers outnumbered decliners, signaling strength across various sectors. This broad-based participation supports the ongoing stock market rally.

Foreign investors purchased a net 604.78 billion won in shares. Institutional investors also added 116.98 billion won, reinforcing upward momentum. Retail investors, however, sold 827 billion won, locking in recent profits.

While uncertainty surrounds the U.S. tariff deadline, South Korean officials continue talks in Washington. Finance Minister Koo Yun-cheol leads negotiations to reach a balanced outcome. His visit reflects the government’s strong push to secure favorable trade terms.

Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo also remain deeply involved. They are meeting with U.S. trade leaders to avoid harsh penalties. Their efforts may ease investor concerns in coming days.

Analysts say the stock market rally could continue if negotiations succeed. Until then, sector-level movements may dominate due to market caution. Yet foreign buying provides a steady cushion against sharp declines.

Investors remain focused on fundamentals, not just short-term risks. Many believe that strong exports and stable earnings support Korea’s long-term outlook. For now, the stock market rally appears well supported.

With diplomatic efforts ongoing and investor demand rising, the market remains on a positive path. If progress continues, South Korean equities could break new records in the near future.

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