South Korean shares climb to 9-month high on rate cut, US tariff ruling

• KOSPI rises, foreigners net buyers
• Korean won weakens against dollar
• South Korea benchmark bond yield steady

SEOUL, May 29 (Reuters) - Round-up of South Korean financial markets:

South Korean shares climbed more than 1% on Thursday to their highest levels in nine months, as investors cheered the central bank's decision to cut interest rates and a U.S. court's move to block President Donald Trump's proposed tariffs.

The benchmark KOSPI .KS11 was up 35.98 points, or 1.35%, at 2,706.33, as of 0104 GMT, its highest level since August 26, 2024.

The Bank of Korea cut interest rates for a fourth time in the current easing cycle just days ahead of a snap presidential election to bolster an economic recovery that's been clouded by U.S. tariffs.

South Korea's exports are expected to have fallen in May for the first time in four months, as the impact of U.S. tariffs offset strong demand for semiconductors, according to a Reuters poll.

Meanwhile, a U.S. trade court on Wednesday blocked Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

Among index heavyweights, chipmaker Samsung Electronics 005930.KS rose 0.18%, while peer SK Hynix 000660.KS gained 1.68%. Battery maker LG Energy Solution 373220.KS slid 0.35%.

Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were up 1.67% and up 3.03%, respectively. Steelmaker POSCO Holdings 005490.KS added 1.00%, while drugmaker Samsung BioLogics 207940.KS fell 0.88%.

Of the total 936 traded issues, 719 shares advanced, while 170 declined.

Foreigners were net buyers of shares worth 80.9 billion won ($58.45 million).

The won was quoted at 1,381.9 per dollar on the onshore settlement platform KRW=KFTC, 0.43% lower than its previous close at 1,376.0.

In money and debt markets, June futures on three-year treasury bonds KTBc1 lost 0.04 point to 107.59.

The most liquid three-year Korean treasury bond yield KR3YT=RR rose 1.1 basis points to 2.320%, while the benchmark 10-year yield KR10YT=RR rose 0.3 basis point to 2.720%.

($1 = 1,384.0800 won)