KOSPI opens higher on Trump’s ‘TACO’ again… tug-of-war around 5,600

The KOSPI opened with a sharp surge. Investor sentiment appears to be recovering after U.S. President Donald Trump showed what’s being dubbed “TACO” (TACO·Trump Always Chickens Out), signaling he is looking to step back from a war with Iran.

As of 9:05 a.m. on the 24th, the KOSPI was trading at 5,593.98, up 188.23 points (3.48%) from the previous session. After opening at 5,638.20, up 4.3% from the prior close, it pared gains and has been locked in a tug-of-war around the 5,600 level.

Foreign investors and institutions are selling stocks on the main board. They are net sellers of KRW 188.4 billion and KRW 77.2 billion, respectively. Foreigners are also selling KOSPI 200 futures worth KRW 203.4 billion.

Retail investors are net buyers of KRW 258.6 billion worth of shares.

Most heavyweight stocks by market capitalization are rising.

Samsung Electronics and SK hynix are up 4.19% and 5.89%, respectively. SK Square is gaining 5.21%.

Hyundai Motor is up 3.51%, while Kia is down 1.98%.

LG Energy Solution is up 4.35%, Samsung Biologics 2.3%, and Doosan Enerbility 3.38%.

The KOSDAQ is trading at 1,131.09, up 34.20 points (3.12%) from the previous session. In this market as well, retail investors are net buyers of KRW 103.0 billion worth of shares, while foreigners and institutions are selling KRW 65.2 billion and KRW 33.9 billion, respectively.

All of the top KOSDAQ market-cap names are rising.

Samchundang Pharm is up 5.84%, Alteogen 3.33%, ABL Bio 4.44%, and LigaChem Bio 6.94%.

Ecopro and Ecopro BM are also up 6.45% and 6.31%, respectively.

Rainbow Robotics (1.68%) and Lino Industrial (2.26%) are also higher.

In the Seoul FX market, the won-dollar exchange rate is trading at KRW 1,490.9 per dollar, up KRW 4.2 (0.28%) from the previous session.

Overnight, U.S. stocks also rebounded strongly. On June 23 (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 631.00 points (1.38%) to 46,208.47, the Standard & Poor’s (S&P) 500 gained 74.52 points (1.15%) to 6,581.00, and the Nasdaq Composite, heavy in tech stocks, jumped 299.15 points (1.38%) to 21,946.76.

Sentiment improved after President Trump said on June 23 (local time), ahead of the market open via his social media, that the U.S. and Iran had “very good and productive talks to fully and comprehensively resolve hostilities.”

Earlier, on June 21, President Trump warned Iran that if it did not open the Strait of Hormuz within “48 hours,” he would reduce power plants to ruins. However, as concerns grew that the situation could escalate if Iran retaliated against attacks on power plants, he appears to have moved to ease tensions.

Iran, however, denied that there had been negotiations with the U.S. According to Iran’s state-run IRNA news agency, a spokesperson for Iran’s foreign ministry said that “over the past 24 days of the ongoing imposed war, there have been no negotiations or talks with the United States,” prompting U.S. stocks to give back part of their gains.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com