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Seoul shares hit 4-year high despite U.S. tariff uncertainty

Published: 29 Jul. 2025, 17:57 Updated: 29 Jul. 2025, 18:01

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 3,230.57 points on July 29, up 21.05 points, or 0.66 percent, from the previous trading session. [NEWS1]

Shares climbed to the highest level in nearly four years Tuesday, buoyed by strong foreign buying, as last-minute negotiations are under way between Seoul and Washington over the Donald Trump administration's aggressive tariff scheme. The won fell against the dollar.

The benchmark Kospi added 21.05 points, or 0.66 percent, to close at 3,230.57, extending its winning streak to a fifth session.

The reading marks the highest level since Aug. 19, 2021, when the index finished at 3,243.19.

Trade volume was moderate at 369.74 million shares worth 12.66 trillion won ($9.09 billion), with winners beating losers 468 to 409.

The index opened lower as investors await key developments in tariff talks, with just three days remaining until the Aug. 1 deadline for a deal before the United States starts imposing reciprocal tariffs, including a 25 percent duty for Korea. The Kospi soon turned higher on the back of solid foreign buying and maintained the momentum.

Offshore and institutional investors bought a net 604.78 billion won and 116.98 billion won worth of shares, respectively, while retail investors sold a net 827 billion won.

"The domestic stock market is expected to continue showing sectoral divergence amid a wait-and-see stance ahead of a tariff deal," said Han Ji-young, a researcher at Kiwoom Securities.

Finance Minister Koo Yun-cheol said that he would try to reach a "mutually beneficial" agreement with the United States as he left for Washington to meet with Treasury Secretary Scott Bessent on Thursday.

Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo continued to engage in intensive negotiations with their U.S. counterparts, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.

Most big-cap shares gathered ground.

Market bellwether Samsung Electronics rose 0.28 percent to 70,600 won, while chip giant SK hynix added 0.19 percent to 262,500 won.

Major battery maker LG Energy Solution surged 3.02 percent to 392,000 won, and leading pharmaceutical firm Samsung Biologics advanced 1.97 percent to 1.09 million won.

Defense giant Hanwha Aerospace soared 4.72 percent to 998,000 won, and nuclear power plant manufacturer Doosan Enerbility climbed 2.52 percent to 65,100 won. Top financial firm KB Financial went up 0.72 percent to 111,300 won.

Carmakers ended mixed. Top automaker Hyundai Motor shed 0.23 percent to 218,000 won, while its sister Kia gained 0.19 percent to 105,700 won.

Leading shipbuilder HD Hyundai Heavy jumped 1.94 percent to 473,500 won, while its rival Hanwha Ocean lost 0.82 percent to 96,800 won.

The local currency was quoted at 1,391.0 won against the greenback at 3:30 p.m., up 0.65 percent from the previous session's quote of 1,382.0 won.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.4 basis point to 2.46 percent and the return on the benchmark five-year government bonds shed 0.2 basis point to 2.613 percent.

Yonhap