[Market Movers] Shipbuilding Stocks Surge on South Korea-U.S. Cooperation Hopes... Hanwha Ocean Up Over 6%

Shares of shipbuilding-related companies surged in early trading on April 25, after the shipbuilding industry was highlighted as a key area of cooperation during the South Korea-U.S. '2+2 Trade Talks'.

As of 10:00 a.m. on this day, Hanwha Ocean's share price had jumped 6.06% from the previous trading day to 85,800 won. HD Hyundai Heavy Industries and HD Korea Shipbuilding & Offshore Engineering were also trading higher at 395,500 won (up 5.19%) and 260,500 won (up 4.41%) respectively.

Other companies such as HJ Shipbuilding & Construction (up 1.68%) and HD Hyundai Mipo Dockyard (up 1.51%) also saw gains.

Growing expectations for cooperation between South Korea and the U.S. in the shipbuilding sector appear to have boosted investor sentiment. On the previous day, Deputy Prime Minister and Minister of Economy and Finance Choi Sangmok and Minister of Trade, Industry and Energy Ahn Dukgeun met with U.S. Secretary of the Treasury Scott Besant and U.S. Trade Representative Jamison Greer in Washington, D.C. They proposed measures for balanced trade between South Korea and the U.S., enhancement of South Korea's energy security, and mutual contributions by both countries to rebuild the U.S. shipbuilding industry, while also requesting tariff exemptions.

Additionally, news of U.S. Secretary of the Navy John Phelan's planned visit to South Korea is also seen as having an impact. Secretary Phelan is scheduled to visit South Korea on April 30 and tour Korean shipbuilding companies located in Geoje and Ulsan, Gyeongnam Province. This has fueled expectations that South Korean companies may secure contracts for U.S. Navy warship projects.