The domestic stock market surged on the 10th due to the suspension of reciprocal tariffs by U.S. President Donald Trump and the consequent steep rise in the U.S. stock market. While the suspension of reciprocal tariffs alleviated concerns about a global economic recession, it seems to have sparked a risk-seeking sentiment, confirming that President Trump could not ignore market reactions.
As of 10:40 a.m. on the same day, the KOSPI index recorded 2409.73, up 1116.07 points (5.06%) from the previous trading day. The index started at 2395.13, up 101.43 points (4.42%) from the previous day, and has maintained a steep upward trend, briefly touching the 2420 mark in early trading.
At 9:06 a.m., the KOSPI program buying order temporarily suspended (circuit breaker) was triggered. The circuit breaker is triggered when the KOSPI 200 futures index fluctuates by more than 5% compared to the previous day's closing price for a duration of one minute. At the time the circuit breaker was activated, the KOSPI 200 futures index had surged 5.76% to a level of 322.20 compared to the previous trading day.
In the securities market, foreign and institutional investors have bought a net 225.9 billion won and 98.5 billion won worth of shares, driving the index up. Individual investors show a selling advantage of 337.9 billion won. Foreign investors are also net buyers of nearly 900 billion won in the KOSPI 200 futures market.
Most of the large-cap stocks are rising. The Philadelphia Semiconductor Index, closely related to the Korean market, surged 18.73%, while Samsung Electronics and SK hynix gained 4.91% and 9.94%, respectively. Additionally, LG Energy Solution, Hyundai Motor, Kia, Celltrion, and Hanwha Aerospace have generally risen by around 5%.
At the same time, the KOSDAQ index is also climbing, recording 675.30, up 31.91 points (4.96%) from the previous trading day. Foreign and institutional investors are net buyers of 1.4 billion won and 1.92 billion won, respectively. Individual investors are selling 3.35 billion won worth.
Large-cap stocks in the KOSDAQ market are also showing a steep rise. Stocks in the pharmaceutical and bio sectors, including Alteogen, HUGEL, CLASSYS, and Sam Chun Dang Pharm, as well as companies related to secondary batteries like Ecopro and ECOPRO BM are all increasing significantly.
Overnight, the New York stock market surged sharply, with the Nasdaq index rising 12% following President Donald Trump's announcement of tariff suspensions. The Dow Jones Industrial Average rose 7.87%, and the Standard and Poor's (S&P) 500 index increased by 9.52%.
Accordingly, the mutual tariff on South Korea has been reduced from 25% to 10% for 90 days, and subsequently, tariffs are expected to be adjusted through negotiations. However, tariffs on categories like automobiles and steel, which are set at 25%, will be maintained. It is analyzed that the fact that Trump may find it difficult to push forward with tariff policies while ignoring market reactions has stimulated a risk-seeking sentiment.
Lee Seong-hoon, a researcher at Kiwoom Securities, noted, "The financial market instability stemming from the sudden rise in U.S. Treasury yields, the sharp decline in the stock market following the announcement of the mutual tariff, and concerns about an economic recession seem to have triggered the 'Trump put.'"