FX.co ★ KOSPI Rises on Optimism Over Trade Task Force

The benchmark KOSPI index climbed by 1% to approximately 2,970 points on Tuesday, marking its highest level in nearly three years. This advance extends the gains seen in the previous session as investors grow hopeful regarding the new policy directions introduced by South Korea's incoming presidential administration. Initial worries about tensions between Israel and Iran were alleviated by the establishment of a dedicated task force aimed at negotiating trade issues with the United States. This task force will address both tariff and non-tariff barriers in the industrial and energy sectors, with a focus on easing the challenges exporters face, especially in the automotive, steel, and semiconductor industries, as they navigate ongoing US trade restrictions. On the domestic front, investors evaluated economic data indicating a 2.4% year-over-year decline in export prices, bringing an end to a 16-month period of growth, while import prices decreased by 5% largely due to reduced oil prices. Stocks leading the charge included SK Hynix with a 3.7% rise, Samsung Electronics up by 3.5%, LG Energy Solution gaining 1.7%, and Hyundai Motor increasing by 1.2%.