Seoul shares opened higher on Tuesday amid hopes for ending the U.S. government shutdown and dividend tax reforms. The KOSPI index rose 2.19 percent to 4,162.30 in early trading. This follows a more than 3 percent gain on Monday.
On Monday, November 10, Seoul shares surged more than 3 percent, boosted by the government's proposed dividend tax reform and signs of an end to the U.S. government shutdown. The KOSPI index added 119.48 points, or 3.02 percent, closing at 4,073.24. Trading volume was moderate at 334 million shares worth 16.5 trillion won ($11.3 billion), with gainers outnumbering losers 804 to 98.
Foreigners net sold 155 billion won in local shares, while individuals offloaded a net 1.16 trillion won; institutions bought a net 1.3 trillion won. Investors bought bargains after last week's tumble due to artificial intelligence bubble concerns. The government and ruling party agreed Sunday to lower the top dividend tax rate from the initial 35 percent proposal, following a July tax revision for separate taxation to encourage payouts and boost the stock market. Seo Sang-young, an analyst at Mirae Asset Securities, said, "Brokerage houses, insurance companies and holding firms led the overall growth amid growing hopes for expanded shareholder returns."
U.S. news indicated the shutdown might end soon, with some Democratic lawmakers supporting reopening. Financial stocks performed strongly, with KB Financial rising 4.28 percent to 129,000 won and Shinhan Financial up 1.81 percent to 78,800 won. SK Square jumped 3.94 percent to 290,000 won, Samsung Electronics advanced 2.76 percent to 100,600 won, and SK hynix soared 4.48 percent to 606,000 won.
The local currency traded at 1,451.4 won per dollar at 3:30 p.m., up 5.5 won from the prior session. Bond yields fell, with the three-year Treasury at 2.865 percent (down 2.9 basis points) and the five-year at 3.035 percent (down 0.8 basis point).
On Tuesday, November 11, shares opened higher, tracking overnight Wall Street gains and U.S. Senate progress on ending the shutdown, which President Donald Trump supported as a bipartisan deal. The KOSPI rose 89.06 points, or 2.19 percent, to 4,162.30 in the first 15 minutes. The Dow gained 0.81 percent, Nasdaq 2.27 percent. Most large-cap stocks advanced: Samsung Electronics up 3.88 percent, SK hynix 3.3 percent, Hyundai Motor 0.74 percent, Kia 0.97 percent, LG Energy Solution 3.97 percent, HD Hyundai Heavy Industries 2.04 percent. Decliners included Hyundai Steel down 0.78 percent and HMM 0.74 percent. The won traded at 1,456.75 against the dollar at 9:15 a.m., down 5.35 won.
