S.Korean shares end 1% higher as exporters rally on tariff optimism

SEOUL, Feb 13 (Reuters) - Round-up of South Korean financial markets:

South Korean shares climbed more than 1% on Thursday, hitting the highest levels since early November, as exporters of cars, batteries and steel rallied on optimism about a potential exemption to U.S. tariffs.

The benchmark KOSPI .KS11 closed up 34.78 points, or 1.36%, at 2,583.17.

The KOSPI index rose for the third straight session and closed at its highest level since November 4, 2024.

Republican U.S. House of Representatives Speaker Mike Johnson said that he believes U.S. President Donald Trump is considering exemptions to reciprocal tariffs that include the automobile and pharmaceutical industries.

Trump said he would announce reciprocal tariffs this week on every country that charges duties on U.S. imports, after introducing 25% tariffs on steel and aluminium imports on Monday.

"The market's gains today were led by sectors that had been weak recently on tariff worries," said Cho Jun-kee, an analyst at SK Securities.

South Korea's free trade agreement with the United States could help mitigate its exposure to reciprocal tariffs threatened by Trump, economists said.

Shares of Hyundai Motor 005380.KS rose 5.25% and sister automaker Kia Corp 000270.KS gained 2.84%, while Samsung Biologics 207940.KS closed nearly 2% higher.

Steelmaker POSCO Holdings 005490.KS rallied 6.94%, while Hyundai Steel 004020.KS added 7.06%.

Battery maker LG Energy Solution 373220.KS jumped 5.76%.

Foreigners were net sellers of shares worth 103.4 billion won ($71.40 million).

The won was quoted at 1,447.5 per dollar on the onshore settlement platform KRW=KFTC, 0.59% higher than its previous close at 1,456.0.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 1.4 basis points to 2.638%, while the benchmark 10-year yield KR10YT=RR rose by 0.1 basis point to 2.883%.

($1 = 1,448.2400 won)