South Korean stocks extend gains as Trump eases auto tariffs
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South Korean equities advanced for a second consecutive session on Thursday as investor sentiment improved following U.S. President Donald Trump’s decision to delay auto tariffs on Canada and Mexico by one month. The move signaled potential room for trade negotiations, providing relief to markets concerned about escalating trade restrictions.
The Korea Composite Stock Price Index (Kospi) closed 0.7% higher at 2,576.16, gaining 18.03 points, while the Kosdaq fell 1.6% to 734.92, marking a divergence in performance between large-cap and smaller tech-focused stocks.
Macroeconomic Data & Inflation Trends South Korea’s inflation rate rose 2% year-over-year in February, marking the first moderation in four months, down from 2.2% in January. The reading slightly exceeded market expectations of 1.95%, as forecasted in a Reuters poll. Month-on-month, the consumer price index (CPI) rose 0.3%, while core inflation, excluding food and energy, increased 1.8% year-over-year and 0.1% from the previous month. The data suggest inflationary pressures are stabilizing, potentially reducing the urgency for aggressive monetary tightening.
Corporate Developments: Samsung Expands into Robotics In the corporate sector, Samsung Electronics (005930) received approval from South Korea’s antitrust regulator for its acquisition of Rainbow Robotics (KOSDAQ:277810), clearing monopoly concerns. The acquisition aligns with Samsung’s broader strategy of diversifying into humanoid robotics to expand its technological footprint.
Samsung’s stock gained nearly 1%, reflecting investor confidence in its expansion plans, while Rainbow Robotics shares plunged 7%, indicating market caution regarding the acquisition’s impact on the company’s independent growth prospects.
Market Outlook With tariff relief offering short-term stability and inflationary pressures showing signs of moderation, South Korea’s equity market may see continued investor confidence. Traders will closely watch global trade developments, central bank policies, and corporate earnings trends to gauge market momentum in the near term.
The Korea Composite Stock Price Index (Kospi) closed 0.7% higher at 2,576.16, gaining 18.03 points, while the Kosdaq fell 1.6% to 734.92, marking a divergence in performance between large-cap and smaller tech-focused stocks.
Macroeconomic Data & Inflation Trends South Korea’s inflation rate rose 2% year-over-year in February, marking the first moderation in four months, down from 2.2% in January. The reading slightly exceeded market expectations of 1.95%, as forecasted in a Reuters poll. Month-on-month, the consumer price index (CPI) rose 0.3%, while core inflation, excluding food and energy, increased 1.8% year-over-year and 0.1% from the previous month. The data suggest inflationary pressures are stabilizing, potentially reducing the urgency for aggressive monetary tightening.
Corporate Developments: Samsung Expands into Robotics In the corporate sector, Samsung Electronics (005930) received approval from South Korea’s antitrust regulator for its acquisition of Rainbow Robotics (KOSDAQ:277810), clearing monopoly concerns. The acquisition aligns with Samsung’s broader strategy of diversifying into humanoid robotics to expand its technological footprint.
Samsung’s stock gained nearly 1%, reflecting investor confidence in its expansion plans, while Rainbow Robotics shares plunged 7%, indicating market caution regarding the acquisition’s impact on the company’s independent growth prospects.
Market Outlook With tariff relief offering short-term stability and inflationary pressures showing signs of moderation, South Korea’s equity market may see continued investor confidence. Traders will closely watch global trade developments, central bank policies, and corporate earnings trends to gauge market momentum in the near term.