Seoul shares soar nearly 2% as US-led trade talks to continue till Aug.
The benchmark Korea Composite Stock Price Index added 55.48 points, or 1.81 percent, to close at 3,114.95.
Trade volume was heavy at 735.5 million shares worth 13.2 trillion won ($9.65 billion), with gainers outnumbering decliners 643 to 240.
Foreign investors led the bullish mode, scooping a net 251.6 billion won worth of stocks, and institutions bought a net 21.6 billion won. However, individuals dumped a net 263.1 billion won.
Earlier in the day, Trump unveiled a letter addressed to South Korean President Lee Jae Myung, saying that the United States will start imposing 25 percent tariffs on South Korean products on Aug. 1.
He also sent such letters to Japan and other countries.
Analysts said that the letter is negative for South Korea but it brushed off uncertainties over US tariff policies.
Washington imposed country-specific reciprocal tariffs in April but placed a 90-day pause, which was set to end Tuesday.
Financial and energy shares were among the biggest winners.
Hana Financial Group surged 10.27 percent to 94,500 won, and Woori Financial Group soared 8.32 percent to 25,400 won.
Samsung Fire & Marine Insurance jumped 5.11 percent to 463,000 won, and Kyobo Securities vaulted 9.1 percent to 9,110 won.
Korea Electric Power Corp. rose 4.46 percent to 38,650 won, and Doosan Enerbility advanced 5.88 percent to 66,600 won.
Carmakers also finished in positive territory, with industry leader Hyundai Motor gaining 1.2 percent to 211,000 won and its sister Kia adding 0.51 percent to 99,100 won.
However, Samsung Electronics lost 0.49 percent to 61,400 won following its worse-than-expected second-quarter earnings guidance. The world's largest memory chipmaker estimated its second-quarter operating profit plunged 55.9 percent from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations.
The local currency was quoted at 1,367.9 won against the greenback at 3:30 p.m., down 0.1 won from the previous session. (Yonhap)
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