South Korea’s KOSPI index ended Tuesday’s trading up by 0.65%, showing improved investor confidence due to signs that trade tensions with the United States might ease. The index closed at 2,565.42, rising by 16.56 points and reaching its highest level in about a month.
During the day, the market showed some fluctuations. It opened slightly lower at 2,550.25, reached a peak of 2,571.41, and dipped to a low of 2,542.25.
This marked the third straight day of gains for the KOSPI, mainly driven by easing worries over potential U.S. tariffs on automotive products. Reports that the Trump administration might lessen the impact of tariffs on foreign-made auto parts boosted confidence, especially for South Korea’s export-focused economy. Institutional investors also played a significant role in supporting the market’s rise.
The better trade outlook particularly helped the automotive sector. Major companies such as Hyundai Motor and Kia Corp saw their shares increase by 1.8% and 1.9%, respectively. The healthcare sector also did well, with Samsung Biologics rising 1.5% after securing a new contract in the U.S., while Celltrion gained 3.2% following its announcement of a share buyback program.
However, not every sector benefited. Hanwha Ocean, a shipbuilding company, fell by 12.1% after news that the Korea Development Bank plans to sell its stake in the firm. Tech giant SK hynix also experienced a slight decline.
Overall, the market’s positive closing reflects cautious optimism among investors. They are closely watching the progress of Korea-U.S. trade talks and global economic trends. The easing of tariff concerns helped lift the KOSPI to a notable monthly high.