Latest news with #Kospi200
Bloomberg
5 days ago
- Business
- Bloomberg
Trader Spends $755 Million to Bet on More Gains in Korean Stocks
A trader spent around $755 million in options betting South Korea's stock rally has more to go after this week's election ended months of political uncertainty. An opening block of more than 11,000 bullish contracts on the benchmark Kospi 200 Index changed hands in late trading Wednesday for more than 1 trillion won in notional. The calls, expiring July 10, have an exercise level of 385, implying a 4.1% gain from the last close.
Korea Herald
10-04-2025
- Business
- Korea Herald
Seoul shares rally over 6% on US reciprocal tariff pause; Korean won soars
South Korean stocks rallied 6.6 percent Thursday as the US administration's temporary pause of reciprocal tariffs on South Korea improved market sentiment. The Korean won was trading sharply higher against the US dollar. The benchmark Korea Composite Stock Price Index soared 151.36 points, or 6.6 percent, to close at 2,445.06, sharply rebounding from the 17-month low the previous day. Shortly after the stock market opened, the bourse operator issued a sidecar order at 9:06 a.m., halting program purchasing for five minutes, after the Kospi 200 futures soared 5 percent for more than one minute. Trade volume was a bit heavy at 661 million shares worth 10.9 trillion won ($7.5 billion), with winners far outperforming losers 873 to 47. Foreigners and institutions purchased local shares worth 324.4 billion won and 676.2 billion won, respectively, while retail investors dumped a combined 1.07 trillion won. Overnight, Wall Street posted one of the best days since the global financial crisis in 2008, with the S&P 500 surging 9.5 percent, the Dow Jones Industrial Average soaring 7.87 percent and the tech-heavy Nasdaq composite skyrocketing 12.16 percent. The rally came after US President Donald Trump lowered new tariffs on South Korea and other trading partners to 10 percent in what he calls a pause that will last for 90 days. He said the decision was made considering they have reached out to US trade officials for negotiations and have not retaliated against the reciprocal tariffs. Meanwhile, Trump increased duties on China to 125 percent following Beijing's announcement of a plan to raise tariffs on US goods to 84 percent in a retaliatory move. "Concerns turned to relief after the Trump announced a 90-day pause of reciprocal tariffs for countries other than China," Lee Kyoung-min, an analyst at Daishin Securities, said. "Shares related to semiconductor, defense, electricity and mobile phone components, in particular, led the Kospi's sharp rebound," he added. In Seoul, market bellwether Samsung Electronics rose 6.42 percent to 56,400 won, while its chipmaking rival SK hynix shot up 11.03 percent to 183,200 won. Leading battery maker LG Energy Solution soared 11.31 percent to 349,500 won, tracking Tesla's jump overnight, and top automaker Hyundai Motor advanced 5.06 percent to 187,000 won. Major shipbuilders HD Hyundai Heavy and Hanwha Ocean went up 10.39 percent and 6.56 percent to 324,000 won and 73,100 won, respectively. Top container shipper HMM increased 8.03 percent to 19,110 won, and major defense firm Hanwha Aerospace climbed 7.09 percent to 740,000 won. Financial shares also sharply gained ground, with KB Financial jumping 7.05 percent to 75,900 won and Shinhan Financial rising 5.5 percent to 46,000 won. Kakao, the operator of the country's dominant mobile messenger, also gained 7.67 percent to 40,000 won. The local currency was quoted at 1,456.4 won against the greenback at 3:30 p.m., up 27.7 won from the previous session. (Yonhap)
Korea Herald
10-04-2025
- Business
- Korea Herald
Tariff blow sinks Kospi, clouds growth outlook
The South Korean benchmark Kospi sank below the threshold of 2,300 points for the first time in 17 months, suffering a blow from the angst surrounding "reciprocal tariffs" imposed by the US. Coupled with the stock market's slump, the value of the Korean won against the US dollar further weakened past 1,480 won. As 25 percent tariffs on Korean goods imported to the US took effect Wednesday as previously scheduled, the Kospi closed daytime trading at 2,293.7, sliding 40.53 points, or 1.74 percent, according to data from the Korea Exchange. It was the first time the index had dropped below the 2,300 mark since Nov. 1, 2023. The index kicked off trading at the opening bell at 2,329.99, but losses deepened through the session, dipping to as low as 2,284.72. Foreign investors deepened the market's loss by dumping shares worth 1 trillion won ($677 million) on the Kospi, while institutional investors net sold 70 billion won. Retail investors were the sole buyers, racking in shares worth 939 billion won. The secondary bourse Kosdaq closed daytime trading at 643.39, losing 15.06 points or 2.29 percent on-day. It was the first time the Kosdaq dropped below the 650 threshold since Dec. 9, 2023. The plunge comes two days after a sidecar — a five-minute halt on program trading — was activated on Kospi 200 futures on Monday, as the Kospi fell below 2,400. With the bearish bourse, market bellwethers Samsung Electronics closed trading at 53,300 won, down 0.19 percent, while SK hynix wrapped the session up at 165,000 won, down 2.65 percent. Amid heightened tension between the US and China sparked by US President Donald Trump's tariffs, investors are shifting to low-risk assets, weighing pressure on the Kospi. The US' 25 percent tariff imposition on Korea casts a cloud over its export-dependent economy, as higher tariffs drive up the manufacturing expenses. The 46 percent tariff levied on Vietnamese goods is also likely to negatively impact Korean companies like Samsung Electronics and LG Electronics, considering the Southeast Asian country serves as a key production hub for the tech giants. Experts predict the tariffs could hold back the overall growth of the Korean economy, which has already been suffering from a slowdown in private consumption. KB Securities estimated that Trump's tariffs could pull down Korea's growth rate by up to 0.4 percentage point. The Korea Institute for International Economic Policy also projected that Korea's total exports could shrink by $44.8 billion if the US imposes a 20 percent tariff on all countries. The impact could be bigger still, as the actual tariffs that materialized are higher. Pricing in similar concerns, other stock markets in Asia were also deep in the red. Benchmark indices of major Asian economies such as Japan, Taiwan and Hong Kong suffered a roughly 4 percent loss. Foreign investors' continued selling spree on the stock market also pulled down the local won's value per dollar. The Korean won's value per greenback reached 1,487.6 won during daytime trading Wednesday, weakening to its worst figure since hitting a high of 1,492 won on March 16, 2009. It even surpassed the recent intraday trading peak set at 1,487.2 won on Dec. 27. The won eventually closed daytime trading at 1,484.1 won per dollar, devaluing by 10.9 won on-day. The won's depreciation is being exasperated by the devaluation of the Chinese yuan, as the local currency is treated as the yuan's proxy. The offshore yuan fell to its weakest level on record upon speculation of China easing its grip on the currency in an attempt to offset the blow to exports amid the intensified trade war. 'If the US-China currency war intensifies and the Chinese yuan further weakens, the won-per-dollar rate is more likely to surpass the 1,500 won threshold,' iM Securities analyst Park Sang-hyun said.
Korea Herald
10-04-2025
- Business
- Korea Herald
Historic US stock rally lifts Seoul markets; Kospi up 5% in first 15 mins, won gains
Sidecar activated as KOSPI jumps 5.15% in first 15 minutes of trading South Korean stocks soared at the start of Thursday's trading session, following a major rally on Wall Street overnight. The surge came after US President Donald Trump announced a temporary pause on reciprocal tariffs for key trading partners, including South Korea — with China as the only exception. The benchmark Kospi jumped 118.11 points, or 5.15 percent, to 2,411.81 within the first 15 minutes of trading. This sharp rebound followed a 17-month low recorded just a day earlier. The spike triggered a sidecar — a mechanism designed to prevent excessive volatility — at 9:06 a.m., halting program trading for five minutes after Kospi 200 futures surged over 5 percent for more than a minute. The South Korean won also strengthened sharply. As of 9:15 a.m., the local currency was trading at 1,457 won per US dollar, up 27.1 won from the previous session. The rally in Seoul followed a historic day on Wall Street. The S&P 500 shot up 9.5 percent, the Dow Jones Industrial Average gained 7.87 percent, and the tech-heavy Nasdaq skyrocketed 12.16 percent — marking one of the strongest single-day gains since the 2008 global financial crisis. President Trump announced that new tariffs on countries like South Korea would be reduced to 10 percent and suspended for 90 days, citing ongoing negotiations and the absence of retaliatory measures. However, he raised tariffs on Chinese goods to 125 percent after Beijing announced it would hike tariffs on US imports to 84 percent. In Seoul, major stocks reflected the positive sentiment. Tech giant Samsung Electronics climbed 5.66 percent, and semiconductor maker SK hynix surged 12.55 percent. Leading battery producer LG Energy Solution rose 5.57 percent, while Hyundai Motor advanced 7.13 percent. Shipbuilders also saw gains: HD Hyundai Heavy increased 7.16 percent, and Hanwha Ocean rose 6.27 percent. Top shipping firm HMM gained 6.33 percent, while major financial group KB Financial added 5.08 percent.
Korea Herald
10-04-2025
- Business
- Korea Herald
Seoul shares open sharply higher on eased US tariffs woes; Korean won spikes
South Korean stocks kicked off sharply higher Thursday after US President Donald Trump temporarily paused reciprocal tariffs on South Korea and other trading partners, except China. The benchmark Korea Composite Stock Price Index rallied 118.11 points, or 5.15 percent, to 2,411.81 in the first 15 minutes of trading, sharply rebounding from the 17-month low the previous day. With the steep gain, the bourse operator issued a sidecar order at 9:06 a.m., halting program purchasing for five minutes, after the Kospi 200 futures soared 5 percent for more than one minute. Overnight, Wall Street posted one of the best days since the global financial crisis in 2008, with the S&P 500 surging 9.5 percent, the Dow Jones Industrial Average soaring 7.87 percent and the tech-heavy Nasdaq composite skyrocketing 12.16 percent. The rally came after Trump said he lowered new tariffs on South Korea and other trading partners to 10 percent in what he calls a pause that will last for 90 days, considering they have reached out to US trade officials for negotiations and have not retaliated against the reciprocal tariffs. Meanwhile, Trump increased duties on China to 125 percent following Beijing's announcement of a plan to raise tariffs on US goods to 84 percent in a retaliatory move. In Seoul, market bellwether Samsung Electronics rose 5.66 percent, while its chipmaking rival SK hynix shot up 12.55 percent. Leading battery maker LG Energy Solution gained 5.57 percent, and top automaker Hyundai Motor advanced 7.13 percent. Major shipbuilders HD Hyundai Heavy and Hanwha Ocean climbed 7.16 percent and 6.27 percent, respectively. Top container shipper HMM increased 6.33 percent, and KB Financial went up 5.08 percent. The local currency was trading at 1,457 won against the US dollar at 9:15 a.m., up 27.1 won from the previous session. (Yonhap)
