Accumulated Tariff Fatigue... KOSPI and KOSDAQ Close Lower

As tariff fatigue from the Trump administration in the U.S. accumulated, the KOSPI index closed lower on the 7th.

On that day, the KOSPI closed at 2,563.48, down 12.68 points (0.49%) from the previous day. The index started at 2,553.44, down 22.72 points (0.88%), and failed to rebound. Foreigners bought stocks worth 49.5 billion KRW, and institutions purchased 30.1 billion KRW worth. Individuals sold stocks worth 186.7 billion KRW.

Among the top market capitalization stocks, Hanwha Aerospace (7.82%), POSCO Holdings (7.28%), LG Energy Solution (1.50%), SK Innovation (1.19%), Hanwha Ocean (0.88%), and Samsung Electronics Preferred (0.66%) rose. On the other hand, Meritz Financial Group (-6.45%), Kakao (-2.99%), Shinhan Financial Group (-2.91%), NAVER (-2.74%), Samsung Biologics (-2.65%), Celltrion (-2.18%), Kia (-1.22%), KB Financial Group (-1.15%), Samsung Electronics (-1.10%), and HD Hyundai Heavy Industries (-0.94%) declined.

By sector, metals (3.67%), chemicals (1.72%), transportation equipment parts (0.72%), and entertainment & culture (0.16%) rose. Conversely, pharmaceuticals (-2.55%), insurance (-2.31%), financials (-2.00%), general services (-1.82%), IT services (-1.62%), and paper & wood (-1.24%) sectors fell.

Ji-won Kim, a researcher at KB Securities, said, "The market showed a downward trend amid accumulated tariff fatigue. Defense stocks showed strength following news that Polish President Andrzej Duda publicly praised Korean-made weapons, and Hanwha Aerospace hit a new high after news emerged that it invested in a U.S. defense startup, Shield AI, to secure technological competitiveness."

The KOSPI index and others are displayed on the status board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Jo Yong-jun

The KOSDAQ index closed at 727.70, down 7.22 points (0.98%) from the previous session. The index started at 729.43, down 5.49 points (0.75%), and briefly rebounded in the morning, but due to a lack of positive catalysts, it ultimately closed lower. Foreigners were net buyers of 33.3 billion KRW, individuals net bought 78.9 billion KRW, while institutions were net sellers of 99.6 billion KRW.

Among the top market capitalization stocks, Rinogongup (4.42%), EcoPro BM (3.37%), HPSP (2.16%), Voronoi (1.85%), SM (1.55%), EcoPro (1.36%), and JYP Ent. (0.88%) closed higher. Meanwhile, Pharma Research (-6.15%), Ligachem Bio (-6.00%), Alteogen (-5.63%), Kolon TissueGene (-4.55%), Enchem (-4.42%), Hugel (-4.12%), Peptron (-3.79%), Celltrion Pharm (-2.57%), Pearl Abyss (-2.19%), Rainbow Robotics (-1.83%), and Classys (-1.01%) declined.

Researcher Kim said, "With a sharp increase in U.S. corporate layoffs last month, concerns about the upcoming U.S. nonfarm payroll report to be released tonight have also risen. Since U.S. inflation data is scheduled for next week, a wait-and-see stance is expected to continue until the data is confirmed."