The domestic stock market rose as the relevant countries cheered that the United States decided to postpone the imposition of tariffs on Canada and Mexico for 30 days. However, during the session, China's announcement of retaliatory tariff measures against the U.S. reduced the index's gains.
On the 4th, the KOSPI index finished trading at 2481.69, up 27.74 points (1.13%) from the previous transaction day. It's the first time in five trading days that the KOSPI index has risen more than 1 percentage point in one day. After falling more than 2.5% the previous day, the KOSPI index started rising and even recovered the 2500 level in the early session, but the gains diminished in the afternoon.
The KOSDAQ index also soared more than 3% but lost some strength before the market closed, finishing up from the previous day.
In the securities market, institutions purchased a net of 124.1 billion won, foreigners bought a net of 76.8 billion won, while individuals sold a net of 293.5 billion won.
The rebound in the stock market that day was due to expectations that the tariff war triggered by U.S. President Donald Trump would not materialize immediately. President Trump had decided to impose a 25% tariff on Canada and Mexico starting from midnight on the 4th but postponed its implementation by a month on the 3rd (local time).
President Trump proposed this negotiation plan after speaking with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum. The U.S. and Canada agreed to strengthen their border to prevent the influx of drugs and illegal immigrants into the United States.
By individual stock, Samsung Electronics' rise was prominent. Samsung Electronics finished trading at 52,700 won, up 3.33% from the previous day. Additionally, SK hynix (0.10%), Kia (0.62%), and Celltrion (0.80%) also closed higher, while LG Energy Solution (-1.04%), Samsung Biologics (-2.10%), and Hyundai Motor (-0.50%) closed lower.
Although the KOSPI index jumped, it is difficult to conclude that the Trump risk has been completely resolved. The tariffs have been postponed, but they have not been entirely canceled. Park So-yeon, a research analyst at Shinyoung Securities, noted, "The way any agreement is reached is essential because President Trump uses the tactic of 'negotiating after threatening.'"
On that day, the KOSDAQ index rose by 16.12 points (2.29%) to 719.92. It even recorded 726.28, rising more than 3% in the early session.
In the KOSDAQ market, foreigners purchased a net of 373.6 billion won, institutions bought a net of 48.1 billion won, while individuals sold a net of 410.1 billion won.
Most of the large-cap stocks closed higher. Alteogen (6.10%), ECOPRO BM (1.09%), HLB (0.75%), Ecopro (3.67%), and Rainbow Robotics (9.85%) are examples.
On that day, the won-dollar exchange rate in the Seoul foreign exchange market started at 1459.0 won, down 8.2 won from the previous day, but reduced its decline as the U.S. tariffs on China took effect. While the tariffs on Canada and Mexico were postponed, for China, they took effect at midnight on the 4th (local time). An additional 10% tariff will be imposed on all goods from China starting that day. As a result, the exchange rate ended trading down 4.3 won at 1462.9 won.