With major events such as the Korea-U.S. tariff negotiations, the U.S.-China summit, and a U.S. benchmark rate cut turning into tailwinds one after another, the domestic stock market is continuing its high-altitude rally. As Jensen Huang, Nvidia's chief executive officer (CEO), carries out his itinerary in Korea, raising expectations, and with strong earnings from U.S. big tech joining in, the KOSPI closed at a record high on the 31st on a closing basis.
According to the Korea Exchange (KRX) on the 31st, the KOSPI rose 20.61 points (0.50%) from the previous trading day to 4,107.50. The index opened at 4,083.25, down 3.64 points (0.09%) from the previous session, widened its losses to as low as 4,059.74 at one point, then quickly turned higher and extended gains.
In the main board, institutional investors were net buyers of 814.9 billion won, lifting the index. Individuals and foreigners were net sellers of 203.3 billion won and 598.8 billion won, respectively. Individuals showed buying at the start of trading before turning to selling, while foreigners halted their four-session streak of net selling in KOSPI 200 futures and were net buyers of 283.1 billion won on the day.
The previous day, the KOSPI broke through the 4,100 level for the first time ever on news of a Korea-U.S. tariff deal, but closed at 4,086.89 after a roller-coaster session. The Korea visit by U.S. President Donald Trump and the Korea-U.S. summit held on the 29th served as a catalyst for a deal in tariff talks that had been deadlocked for a long time, which was a boon for the market. However, U.S. Commerce Secretary Howard Lutnick said, "Semiconductor tariffs were not included in this agreement," temporarily denting investor sentiment.
On top of that, the three major U.S. stock indexes fell together overnight, led by tech stocks, weighing on the domestic market early in the session. But Amazon and Apple, which released results after the U.S. close, rose about 13% and 3% in after-hours trading, respectively, and Nasdaq futures rebounded more than 1%. As tech investor sentiment improved, it also helped the domestic market on the day.
CEO Jensen Huang further heightened investment expectations by keeping a packed schedule during his stay in Korea. Following a "chicken meetup" the previous day with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun, he is scheduled to speak as a presenter at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju, delivering a keynote on artificial intelligence (AI), Robotics, and Autonomous Driving.
In particular, CEO Jensen Huang emphasized a 30-year partnership with Korean corporations and signaled he would unveil various ongoing projects with Korea in his speech that day. As a result, buying poured into Robotics-related stocks following semiconductors. Expectations centered on Hyundai AutoEver, a KRX-listed company in charge of Boston Dynamics' business, and Rainbow Robotics, a KOSDAQ-listed firm that joined the Samsung Electronics group. Doosan Robotics and HIGEN RNM also rallied in tandem.
With tariff risk eased by the Korea-U.S. tariff deal and news of a meeting between CEO Huang and Chairman Chung Eui-sun added on, auto stocks also rose across the board. Hyundai Motor, Kia, Hyundai Mobis, and Hanon Systems showed strength. In this deal, the United States decided to cut the tariff it imposes on Korean automobiles to 15% from 25%.
On news that Nvidia will deploy a total of 260,000 graphics processing units (GPUs) to domestic corporations, software-related stocks such as NAVER, Kakao, Samsung SDS, and LG CNS also climbed. With Apple posting its highest quarterly sales ever, parts suppliers for iPhone, including LG Innotek, LG Display, and Samsung Electro-Mechanics, as well as KOSDAQ-listed JNTC, jumped.
By contrast, secondary battery stocks such as Samsung SDI, SK Innovation, and POSCO Holdings fell on the back of the previous day's preliminary earnings release by LG Energy Solution. This is analyzed as reflecting the view that, despite strong growth in energy storage systems (ESS), demand for electric-vehicle batteries is suffering a downturn beyond expectations.
Lee Kyung-min, a researcher at Daishin Securities Co., said, "CEO Jensen Huang is stoking expectations as he carries out his schedule in Korea," and added, "In particular, with an emphasis on Nvidia's partnerships with Korean corporations and a signal that 'there will be good news,' related stocks drew attention."
The KOSDAQ rose 9.56 points (1.07%) from the previous trading day to close at 900.42. Foreigners and institutional investors bought a net 170.4 billion won and 144.1 billion won, respectively, leading the index higher. Individuals alone dumped 308.6 billion won.
Global drugmaker Eli Lilly's strong earnings release and guidance raise sent obesity treatment-related stocks such as D&D Pharmatech, OliX Pharmaceuticals, and Sam Chun Dang Pharm higher across the board. ABL Bio rose more than 7% on news of "BIO-Europe 2025" to be held in Europe.
Among top stocks by market capitalization, bio-related names such as Alteogen, Peptron, and LigaChem Biosciences closed higher. EcoPro BM and EcoPro fell 1.60% and 1.35%, respectively.
In the Seoul foreign exchange market, the weekly transaction closing price of the won against the U.S. dollar (as of 3:30 p.m.) was tallied at 1,424.4 won, down 2.1 won from the previous day.