S.Korean shares log biggest gain in two weeks as Trump extends tariff pause

• KOSPI rises, foreigners net buyers
• Korean won strengthens against dollar
• South Korea benchmark bond yield rises
• For the midday report, please click

SEOUL, July 8 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares on Tuesday recorded their strongest daily gain in two weeks, as U.S. President Donald Trump extended a pause on tariffs, boosting optimism around a potential trade deal.

** The benchmark KOSPI .KS11 closed up 1.81%, or 55.48 points, at 3,114.95, marking its biggest daily percentage rise since June 24.

** South Korea said it planned to intensify trade talks with the United States and considered Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing the levies.

** The imposition of a levy of 25% on U.S. importers of all goods rattled Wall Street on Monday, though markets in Asia were taking the news in their stride.

** The South Korean government also said it would closely monitor the impact of U.S. tariffs on the economy and financial markets.

** "While there might be some disappointment that tariffs were not lowered, there are still three weeks left, so it seems it is unnecessary to worry too much just yet," said Huh Jae-hwan, an analyst at Eugene Investment Securities.

** Shares of Samsung Electronics 005930.KS fell 0.5%, after the South Korean chipmaker projected a far worse-than-expected 56% plunge in second-quarter operating profit due to weak artificial intelligence chip sales. Rival SK Hynix 000660.KS gained 4.06%.

** Battery maker LG Energy Solution 373220.KS slid 2.54%, tracking overnight losses in U.S. electric-vehicle maker Tesla TSLA.O.

** Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS ended up 1.2% and 0.51%, respectively, after South Korea's trade minister said exemptions or reductions in auto and steel tariffs must be included in a trade deal with the United States. Steelmaker POSCO Holdings 005490.KS fell 0.8%.

** Of the total 935 traded issues, 645 shares advanced, while 241 declined.

** Foreigners were net buyers of shares worth 251.6 billion won ($183.91 million).

** The won was quoted at 1,367.9 per dollar on the onshore settlement platform KRW=KFTC, 0.67% higher than its previous close at 1,377.0.

** The most liquid three-year Korean treasury bond yield KR3YT=RR fell by 0.6 basis point to 2.477%, while the benchmark 10-year yield KR10YT=RR rose 1 basis point to 2.850%.

($1 = 1,368.0900 won)