The global stock market erupted with joy following the announcement of the reciprocal tariff suspension by U.S. President Donald Trump. Overnight, the three major stock indexes on the New York Stock Exchange literally skyrocketed, and Asian stock markets recorded unprecedented rallies with bursts of flame. On this day, following the impact of the tariff suspension, the KOSPI and KOSDAQ indexes surged vertically right after the opening, triggering a buy-sidecar for the first time in about eight months.
According to the Korea Exchange on the 10th, the KOSPI index recorded 2,445.06, up 151.36 points (6.60%) from the previous trading day. The index started at 2,395.13, up 101.43 points (4.42%) from the previous day, and expanded its gains.
In the securities market, foreign and institutional investors drove the index higher by buying physical shares in tandem. After selling about 8 trillion won throughout April, foreign investors net bought 2.0604 trillion won, including physical shares and KOSPI 200 futures, on this day. Institutional investors also showed a buying advantage of 676.2 billion won, mainly in pension funds. Individual investors sold 1.0722 trillion won in physical shares and 557.1 billion won in futures.
During the early session, the rapid rise in the index triggered a temporary buy-sidecar for the KOSPI program. The sidecar is activated when the price of KOSPI 200 futures fluctuates by more than 5% compared to the previous day's closing price and lasts for at least one minute. The activation of the buy-sidecar occurred for the first time in over eight months since the rapid rebound after the 'Black Monday' when global stocks plummeted on August 6 last year.
In the domestic stock market, semiconductor, defense, and power equipment sectors, which had fallen sharply due to concerns about reciprocal tariffs, all rebounded significantly. In particular, the Philadelphia semiconductor index, closely tied to the Korean market, surged, leading Samsung Electronics and SK hynix to rise 6.42% and 11.03%, respectively. Export stocks with high sales proportions to the U.S., such as HD Hyundai Electric and LG Energy Solution, also expanded their gains.
Stocks related to power equipment, such as Hyosung Heavy Industries and LS ELECTRIC, which had plummeted due to concerns about an artificial intelligence (AI) bubble, and the surge in Tesla due to the reciprocal tariff suspension, broadly closed higher, including businesses in the secondary battery sector, such as POSCO FUTURE M, LG CHEM, and POSCO Holdings. Among the stocks listed on the securities market that day, 877 rose, while 47 fell. Twelve stocks finished unchanged.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "As sectors that had fallen significantly during the domestic stock market's decline due to concerns about reciprocal tariffs all rebounded sharply, the increases in secondary battery and shipbuilding sectors were sizable due to ongoing moves to contain China. However, recovery to levels prior to the announcement of reciprocal tariffs on the 2nd has still not occurred, making volatility in the negotiation process unavoidable."
On this day, the KOSDAQ index also closed at 681.79, up 38.40 points (5.97%) from the previous trading day. The index started at 670.12, up 26.73 points (4.15%), and maintained a rising trend of 4-5%. During the session, the KOSDAQ 150 futures and KOSDAQ 150 index surged, which also triggered a buy-sidecar in the KOSDAQ market following the KOSPI market.
In the KOSDAQ market, foreign and institutional investors net bought 107.4 billion won and 201.1 billion won, respectively, supporting the index's rise. Individual investors showed a selling advantage of 299.4 billion won. On this day, the trading volume in the KOSDAQ market amounted to 5.9413 trillion won.
Like the securities market, the top market capitalization stocks in the KOSDAQ also closed broadly higher. Among the stocks listed in the KOSDAQ market, 1,577 stocks rose, while 97 fell. Stocks such as ECOPRO BM and Ecopro, which saw inflows of low-price buying due to perceived excessive declines, increased by 9.29% and 9.62%, respectively. The shipbuilding equipment sectors, including SungKwang Bend and Dongsung Finetec, and the HBM value chain-related industries, such as Techwing and YC, saw significant increases.
Lee Jae-won, a researcher at Shinhan Investment Corp., said, "While the reciprocal tariff suspension measure has eased tariff noise, the 25% tariff on automobiles and steel, as well as the 10% general tariff, still persist. With the United States’ consumer price announcement scheduled for tonight, it is necessary to determine whether a Powell put will follow the Trump put."
On this day, the won-dollar exchange rate in the Seoul foreign exchange market closed at 1,456.4 won, down 27.7 won from the previous day. The won-dollar exchange rate recorded 1,484.1 won, the highest level in about 16 years since the global financial crisis, based on the previous day's weekly closing price.