FX.co ★ South Korea Shares Rally on Trade Deal Hopes

The KOSPI surged by almost 2% to surpass 2,860 on Monday, achieving its highest point in nearly nine months. This upswing was spurred by optimism regarding a prospective tariff agreement between the United States and South Korea. The market's hopeful outlook was further bolstered by the announcement that President Trump and South Korea's President Lee Jae-myung have agreed to initiate negotiations for a new tariff arrangement, aimed at mutually beneficial outcomes. Anticipation of this deal is expected to alleviate trade tensions and positively impact South Korea's key export industries, including semiconductors, automobiles, and shipbuilding. In the corporate sector, significant gains were observed in companies such as SK Hynix, which rose by 2.90%, Samsung Electronics, up by 1.18%, Hyundai Motor, increasing by 3.01%, and KB Financial Group, which saw a rise of 1.51%. However, not all companies shared in this success, as LG Energy Solution and Hanwha Aerospace experienced declines of 3.09% and 3.87%, respectively. The prospect of reduced tariffs and improved trade relations has bolstered investor confidence, particularly in the technology and manufacturing sectors, suggesting a positive outlook for South Korea's export-centric economy.