KOSPI Declines Despite US-China Trade Agreement News

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Jihwan] Despite the news of the signing of the first phase trade agreement between the US and China, the KOSPI is showing weakness.

As of 9:23 AM on the 16th, the KOSPI recorded 2230.02, down 0.96 points (0.04%) from the previous session. In the securities market, individuals net bought 96.6 billion KRW, while foreigners and institutions net sold 8.7 billion KRW and 88.8 billion KRW respectively.

By sector, food and beverages (0.03%), electrical and electronics (0.89%), and transportation equipment (1.03%) rose, while paper and wood (-0.24%) and pharmaceuticals (-0.22%) declined.

Among the top market capitalization stocks, Samsung Electronics (1.36%), Hyundai Motor (3.91%), and Hyundai Mobis (0.41%) rose. On the other hand, Samsung Biologics (-0.23%) and Celltrion (-0.28%) fell.

Last night in the New York stock market, major indices showed limited gains despite the official signing of the US-China phase one trade agreement. The limited rise is interpreted as due to concerns that tariffs on China may still remain. Expectations that the US will not reduce existing tariffs until after the year-end election have emerged as factors darkening future outlooks.

Kim Yunbo, a researcher at Cape Investment & Securities, said, "President Trump has expressed his intention to maintain the current level of tariffs on China until the completion of phase two trade negotiations," adding, "While the short-term momentum of domestic stock prices due to this trade agreement signing is valid, attention should be paid to increased short-term volatility due to expanded valuation burdens."

At the same time, the KOSDAQ rose 4.24 points (0.63%) to 683.40 compared to the previous session. Foreigners and institutions net bought 15.3 billion KRW and 3.6 billion KRW respectively, while individuals net sold 23.6 billion KRW.

By sector, most stocks rose including manufacturing (0.64%), IT (1.32%), construction (0.44%), and distribution (0.52%). By stock, Celltrion Healthcare (0.38%) and Studio Dragon (0.58%) rose, while HLB (-2.73%) and Helixmith (-0.34%) declined.

This content was produced with the assistance of AI translation services.