The KOSPI and KOSDAQ indices started the session rising on the 5th, driven by buying from foreign and institutional investors. This marks a rise after four days. Expectations that the tariff war stemming from the U.S. may ease were reflected.
As of 9:08 a.m. on this day, the KOSPI index recorded 2,558.22, up 29.30 points (1.16%) compared to the previous trading day. The KOSPI index started at 2,548.45, up 19.53 points (0.77%). Foreign and institutional investors contributed net purchases of 13.3 billion won and 3.4 billion won, respectively, leading the market. Individuals were net sellers of 22.8 billion won.
The top 10 stocks by market capitalization in the securities market are showing an upward trend. Notably, semiconductor stocks Samsung Electronics and SK hynix are on the rise. Hyundai Motor and Kia are also showing an increase of around 3%.
At the same time, the KOSDAQ index is up 9.68 points (1.31%) to 747.58 compared to the previous trading day. Foreign and institutional investors are contributing net purchases of 4.5 billion won and 11.1 billion won, respectively, raising the market. Individuals were net sellers of 12.3 billion won.
Top stocks in the KOSDAQ market are also rising across the board. Rainbow Robotics is seeing an increase of around 4%, while Alteogen, Sam Chun Dang Pharm, and PharmaResearch are up around 3%.
The Korean stock market was influenced in the morning by the possibility that the U.S. might alleviate the 25% tariff imposed on Canada and Mexico. Howard Rutnik, the U.S. Secretary of Commerce, indicated on the 4th (local time) the possibility of easing the 25% tariff on Canada and Mexico.
In an interview with Fox News, he noted, "Officials from Mexico and Canada have been on the phone with me all day trying to show that they can do better," adding, "There may be some easing measures on tariffs." This statement comes less than a day after the tariffs went into effect.
Earlier, as the tariff war stemming from Trump intensified, all three major indices of the New York stock market fell. On the 4th (local time), the Dow Jones Industrial Average closed at 42,520.99, down 670.25 points (-1.55%). The Standard & Poor's 500 index fell 71.57 points (-1.22%) to 5,778.15, while the technology-focused NASDAQ index closed down 65.03 points (-0.35%) at 18,285.16.
Some U.S. big tech stocks, including Tesla (-4.43%) and Meta (-2.23%), saw significant declines. However, NVIDIA's stock price rebounded by 1.69% thanks to bargain buying.
This was largely influenced by concerns over the tariff war originating in the U.S. President Donald Trump imposed a 25% tariff on imports from Canada and Mexico the day before. In response, Canada immediately announced it would impose tariffs on U.S. imports worth 30 billion Canadian dollars. Mexican President Claudia Sheinbaum also stated, "We will respond to tariffs and non-tariff measures this Sunday." Additionally, Trump decided to impose a total tariff of 20% on imports from China, and China has announced it would impose additional tariffs of up to 15% on certain U.S. products. With escalating concerns over the intensifying tariff war, the New York stock market fell sharply for two consecutive days.