As the United States hinted at a compromise regarding tariffs imposed on trading partners, the domestic stock market staged a relief rally. After returning to an upward trend for the first time in four trading days, the KOSPI index rose more than 1% to maintain the 2,550 level, while the KOSDAQ index also increased by 1.2%.
In particular, stocks in the automobile and steel industries, which are expected to be affected if the tariff war intensifies, showed significant recoveries. U.S. President Donald Trump identified South Korea as a negotiating partner for the Alaska liquefied natural gas (LNG) project, causing related stocks like Korea Gas Corporation to rise.
The KOSPI index closed at 2,558.13 on the 5th, up 29.21 points (1.16%) from the previous day. Foreigners sold a net 224.2 billion won, but individuals and institutions defended and led the market. Individuals bought 91.7 billion won, while institutions purchased 48.4 billion won.
The previous day, the New York Stock Exchange experienced a sharp decline, but the domestic market opened higher. This was due to reduced concerns about the U.S.-origin tariff war. U.S. Secretary of Commerce Howard Lutnick suggested the possibility of reducing the 25% tariffs imposed on Canada and Mexico in a Fox News interview on the 4th (local time). He noted, 'There may be some tariff relief measures.'
"Shinhan Investment Corporation analyst Lee Jae-won stated that the KOSPI index rose as concerns eased following Secretary Lutnick's comments suggesting the possibility of a tariff compromise." Both Hyundai Motor and Kia rose by over 2%, and POSCO Holdings also saw significant gains.
Stocks related to shale gas, including POSCO INTERNATIONAL, HJ Shipbuilding & Construction, and Korea Gas Corporation, surged due to the increased possibility of South Korea participating in the Alaska LNG project.
According to excerpts from a speech distributed in advance by the White House, President Trump plans to introduce that 'my administration is building one of the largest natural gas pipelines in the world in Alaska' and that 'Japan, Korea, and other countries want to be our partners.'
The KOSDAQ index also closed at 746.95, up 9.05 points (1.23%) from the previous day. In the KOSDAQ market, foreigners and institutions led the market. Foreigners and institutions bought 64.5 billion won and 11.2 billion won, respectively, while individuals sold a net 61.7 billion won. Notably, for the KOSDAQ index, this was the first instance of foreign and institutional co-net purchasing since mid-February.
Among the top market cap stocks in the KOSDAQ market, Rainbow Robotics rose by 1.45% on news that its merger with Samsung Electronics was approved. Sam Chun Dang Pharm, Alteogen, Ecopro, LigaChem Biosciences, and PharmaResearch also increased.
However, experts note that concerns about uncertainty abroad regarding the tariff war and the end of the Ukraine conflict have not completely dissipated, indicating a need for continued observation. This research institute stated, 'It is necessary to observe the progress of tariff negotiations and the negotiations on the end of the Ukraine conflict,' adding that 'it is essential to check the results of the Chinese National People's Congress, which began on the 4th, and the U.S. employment report to be released on the 7th.'
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,454.5 won, down 7.3 won from the previous day's closing price at 3:30 p.m.