FX.co ★ South Korea Shares Rise on Trade Optimism, Foreign Buying

The KOSPI index observed a 0.44% increase, closing at 3,183 on Wednesday. This upward movement marked a recovery from earlier declines and was largely attributed to robust foreign purchases and a surge in automobile stocks. Foreign investors continued their net buying spree for the third consecutive session, contributing to enhanced market sentiment and bolstering the Korean won. The positive trend was further supported by a trade agreement between the United States and Japan, which has implemented a 15% tariff on Japanese auto imports into the US. This development is anticipated to benefit South Korean automakers by expanding their market share. Notable gainers included Hyundai Motor, which rose by 4.6%, and Kia Corporation, up by 5.6%, alongside other companies like LG Energy Solution (+0.9%) and Doosan Enerbility (+1.3%). Additionally, the increase in corporate foreign exchange deposits signaled robust export activity and improved liquidity, resulting in greater confidence in publicly listed companies and encouraging equity inflows. In parallel, the government sent senior officials to Washington for discussions on the deal’s potential impacts, indicating proactive diplomatic efforts that further strengthened investor confidence.