KOSPI Falls Back to 2,500 Level Amid U.S. Reciprocal Tariff Concerns… KOSDAQ Also Weakens (Summary)

# Foreign Investors Sell Off, Dragging Down Autos, Biotech, and Defense Stocks # SK Hynix and Financial Shares Gain; Cosmetics Sector Rises on Record Export Performance SEOUL—The KOSPI index dropped on Monday, weighed by investor caution ahead of the Trump administration's announcement of reciprocal tariffs, sliding into the 2,500 mark. Concerns over geopolitical and economic ramifications dampened market sentiment. The KOSPI ended the session at 2,505.86, down 15.53 points or 0.62% compared to the previous day. The index initially opened higher at 2,525.62, gaining 4.23 points or 0.17%, before reversing into losses. Although it momentarily reclaimed the 2,530 level during intraday trading, the index extended its decline towards the session’s close. The political uncertainty that had weighed on the market eased slightly on Friday following the Constitutional Court’s announcement of the date to rule on the impeachment of President Yoon Suk-yeol, pushing the KOSPI up by 1.62%. However, the rally proved short-lived, as the market reversed course on subsequent bearish sentiment. Across Asia, markets traded in narrow ranges as concerns over potential U.S. reciprocal tariffs loomed. Japan’s Nikkei 225 gained 0.28%, while China’s Shanghai Composite slipped 0.12%, reflecting mixed investor sentiment. At 3:30 p.m., the Korean won traded at 1,466.6 against the U.S. dollar, appreciating by 5.3 won from the prior day. # Foreign Investors Lead Massive Sell-off Foreign investors offloaded 727.4 billion won worth of shares in the main bourse, pulling down the index. Domestic retail investors and national institutions countered the foreign exodus with net buys of 478.3 billion won and 147.9 billion won, respectively. In the KOSPI 200 futures market, foreign investors also turned bearish, recording net sales of 1.08 trillion won. The upcoming U.S. tariff announcement, scheduled for 5 a.m. Korea time on Tuesday, heightened market jitters. Further compounding the negative sentiment was the weaker-than-expected March reading of the U.S. Manufacturing Purchasing Managers’ Index (PMI) from the Institute for Supply Management (ISM), which indicated sluggish manufacturing activity, a critical concern for Korea’s export-dependent economy. “Markets across Asia exhibited caution ahead of President Trump’s much-anticipated tariff announcement,” observed Lee Kyung-min, an analyst at Daishin Securities. “Investors remain uncertain about the magnitude of the tariffs and their potential impact on the global economy, driving hesitancy across the board,” he explained. # Sector Movements: Autos, Biotech, and Defense Hit Hard Among large-cap stocks, Samsung Electronics trimmed early-session gains to close flat, while Hyundai Motor slid 1.16% and Kia declined 1.18%. Biotech giants Samsung Biologics (-0.76%) and Celltrion (-2.92%) also posted losses. Defense-related shares bore the brunt of the selloff, with Hanwha Aerospace tumbling 1.49%, Hyundai Rotem plunging 6.52%, and LIG Nex1 dropping 2.90%. In contrast, SK Hynix added 0.46%, while financials like KB Financial (+1.13%) and Shinhan Financial Group (+1.25%) advanced. Cosmetics makers rallied on news that South Korea’s first-quarter cosmetics exports had hit a record high. Stocks such as Kolmar Korea (+3.23%) and Amorepacific (+2.55%) posted robust gains. By sector, chemicals (-1.76%), pharmaceuticals (-1.63%), and electronics (-0.19%) recorded losses, while securities (+0.43%) and food & beverages (+0.30%) edged higher. # KOSDAQ Retreats, Battery Stocks Under Pressure The tech-heavy KOSDAQ index also closed in the red, shedding 6.60 points or 0.95% to end at 684.85. The index opened up 3.92 points or 0.57% at 695.37, briefly trading higher before reversing into losses in the afternoon session. Foreign investors extended a sell streak, dumping 267.2 billion won worth of KOSDAQ shares. Retail investors and institutions partially mitigated the outflows with net purchases of 251.3 billion won and 26.9 billion won, respectively. Battery-related stocks led the losses, with EcoProBM falling 4.60% and EcoPro declining 2.68%. Biotech names such as Alteogen (-2.42%), HLB (-2.24%), Rigel ChemBIO (-4.75%), and Kolon TissueGene (-3.98%) also suffered declines. Gainers included robotic automation company Rainbow Robotics (+1.33%), Hugel (+2.29%), and Samchundang Pharm (+0.57%). Beauty device stocks showed strength, with Classys surging 4.66%, WONTECH gaining 3.60%, and Hironic advancing 6.73%. # Trading Volume Combined trading volume for the KOSPI and KOSDAQ markets reached 7.29 trillion won and 6.34 trillion won, respectively, underscoring a cautious trading environment.