FX.co ★ South Korean Shares Rise on Broad Sector Gains

The KOSPI index increased by 0.80% to approximately 4,140 on Wednesday, marking the third consecutive session of gains, driven by widespread sectoric growth. This movement mirrored the sector rotation observed in US markets, where the Dow Jones reached a record high, contrasting the decline of the tech-heavy Nasdaq Composite. In the KOSPI, auto stocks spearheaded the rally. Hyundai Motor and Kia Corporation both saw gains of 2.8%, alongside advances from Hanwha Aerospace (+1.9%), KB Financial Group (+1.2%), Celltrion (+4.2%), and HD Korea Shipbuilding & Offshore (+2.5%). Conversely, technology shares underperformed with Samsung Electronics dropping 1.0% and SK Hynix declining by 1.5%, as the effects of similar tech weaknesses in the US and SoftBank's complete divestment of its Nvidia stake were felt. Investors also focused on the postponement of the Korea-US tariff agreement, pointing to trade uncertainties but also recognizing a potential reprieve that could benefit automotive exporters once enacted.