FX.co ★ KOSPI Gains on Sector Strength and Trade Truce Optimism

The benchmark KOSPI index experienced a notable increase of 0.85%, reaching approximately 3,234 on Tuesday. This surge marked its highest level in more than a week, as the index managed to recover from initial declines. The upward momentum was primarily driven by strength in the automotive and semiconductor sectors, buoyed by renewed optimism surrounding global trade. On the previous day, the United States and China agreed to extend their tariff truce by 90 days, effectively averting the imposition of steep duties on Chinese imports. This measure bolstered investor confidence and contributed to the stabilization of supply chains. Additionally, the agreement had a positive impact on oil prices, as it alleviated concerns over potential demand reductions caused by resurging trade tensions between the two largest global consumers. Domestically, Trade Minister Yeo Han-koo announced on Tuesday that South Korea plans to intensify its collaboration with APEC members to address challenges related to trade realignment, advancements in artificial intelligence, and demographic changes. The trade ministry is also organizing significant business forums, such as the Invest Korea and CEO summits, leading up to the APEC Summit in Gyeongju this October. The day's gains were led by companies like SK Hynix, which rose by 2.62%, Samsung Electronics, which increased by 1.69%, and Hyundai Motor with a gain of 0.47%.