[Market Focus] Cosmetics Stocks Surge on Hopes for Xi Jinping's Visit to South Korea... Korea Cosmetics Up 21%

On the morning of July 14, shares of cosmetics-related companies saw a simultaneous surge on news that Chinese President Xi Jinping may visit South Korea this fall to attend the Asia-Pacific Economic Cooperation (APEC) summit. This rally is driven by expectations that these companies will benefit from improved Korea-China relations.

As of 9:55 a.m. on the same day, shares of Korea Cosmetics were trading at 11,100 won per share, up 21.71% from the previous session. The stock expanded its gains during the session, even reaching a new 52-week high. At the same time, shares of TonyMoly (up 4.92%), APR (up 4.21%), LG Household & Health Care (up 2.43%), and Amorepacific (up 2.26%) were also rising across the board.

This is analyzed as a result of reports that President Lee Jaemyung mentioned Xi Jinping's attendance at the APEC summit, which is scheduled to be held in Gyeongju in October or November. Investors are buying on expectations that President Xi's visit to South Korea will lead to improved Korea-China relations and the lifting of the Hallyu ban (Hanhanryeong), which could in turn boost future cosmetics exports.

Over the past weekend, Jung Kyujae, former editor-in-chief of The Korea Economic Daily, revealed on his YouTube channel that President Lee mentioned Xi Jinping's attendance at the APEC summit during a luncheon meeting with him.