S.Korean shares end at 3-week high on tariff optimism despite Trump's comments

SEOUL, Feb 11 (Reuters) - Round-up of South Korean financial markets:

South Korean shares climbed on Tuesday to their highest close in nearly three weeks, as investors remained optimistic that the impact of U.S. tariffs would be less severe than initially feared.

The benchmark KOSPI .KS11 closed up 17.78 points, or 0.71%, at 2,539.05, the highest level since January 22.

U.S. President Donald Trump said on Monday he was looking at tariffs on cars, semiconductor chips and pharmaceuticals, after signing proclamations to impose tariffs on steel and aluminium imports.

South Korea's Trade Minister Cheong In-kyo said on Tuesday that Trump's 25% tariffs on steel and aluminium imports would erode domestic steel exporters' profitability.

"Still, the market reaction to Trump's tariffs was comparably optimistic," said Lee Kyoung-min, an analyst at Daishin Securities.

"He is imposing tariffs on grounds that they will strengthen the U.S. manufacturing sector, but there are voices raising concern within the U.S. about inflation, supply chains, and relations with allies," Lee said.

Six of the KOSPI's top 10 heavyweights are chipmakers, automakers and biopharmaceutical stocks. Last year, exports of automobiles, semiconductors and auto parts drove South Korea's shipments to the United States to a record high.

South Korea's exports grew marginally in the first 10 days of this month, as shipments to the United States fell, data showed.

Shares of chipmaker Samsung Electronics 005930.KS rose 0.18% and peer SK Hynix 000660.KS gained 0.81%. Hyundai Motor 005380.KS ended flat, but sister automaker Kia Corp 000270.KS fell 0.85%.

Samsung Biologics 207940.KS jumped 3.89%, while biopharmaceutical peer Celltrion 068270.KS climbed 0.39%.

Shares of Hanwha group companies rallied, with the defence affiliate, Hanwha Aerospace 012450.KS, surging 20.6% to a record high on strong earnings.

Steelmaker POSCO Holdings 005490.KS closed 0.8% lower, extending losses for a second straight day, and Dongkuk Steel Mill 460860.KS fell nearly 1% to close at a three-month low.

Foreigners were net buyers of shares worth 143.5 billion won ($98.76 million).

The won was quoted 0.09% lower at 1,452.6 per dollar on the onshore settlement platform KRW=KFTC.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 1.2 basis points to 2.627%, while the benchmark 10-year yield KR10YT=RR slipped 1.4 basis points to 2.840%.

($1 = 1,452.9800 won)