The Korea Composite Stock Price Index (KOSPI) rebounded on May 5, breaking a three-day losing streak, and climbed into the 2540 range in early trading. This resurgence is largely attributed to growing optimism surrounding potential tariff relief by the U.S. Trump administration.

As of 9:49 a.m., the KOSPI stood at 2542.95, marking a 14.03-point (0.55%) increase from the previous trading day. The index had previously experienced a continuous decline for three trading days since April 27.

The index opened at 2548.45, a 19.53-point (0.77%) rise, and briefly recovered to the 2560 level before slightly retracting. In the securities market, individual and institutional investors were net buyers, purchasing 14.3 billion won and 8.5 billion won, respectively, while foreign investors were net sellers, offloading 30.6 billion won.

Overnight, the New York Stock Exchange saw a general decline amid concerns over escalating trade tensions. The U.S. Trump administration had imposed new tariffs on Mexico, Canada, and China, prompting retaliatory measures and threats from these nations.

However, market sentiment improved after U.S. Secretary of Commerce Howard Rootnik hinted at a potential tariff compromise, suggesting that an agreement could be announced soon. This alleviated fears of extreme retaliatory tariffs. Additionally, expectations that the Trump tariff policy could lead to an economic slowdown, thereby increasing the likelihood of further interest rate cuts by the Federal Reserve (Fed), also contributed to improved investor sentiment.

The Korean stock market is also focusing on the possibility of a U.S. tariff agreement, with bargain hunting driving the rebound from recent losses.

Han Ji-young, a researcher at Kiwoom Securities, commented, "Despite the volatility in the U.S. stock market, the Commerce Secretary's remarks about a tariff compromise with Mexico and Canada after the market closed are offsetting the negative impact. It's necessary to consider a scenario where there's a rotation of funds towards tariff-affected stocks like secondary batteries and automobiles, which experienced a sharp decline the previous day."

Notably, automotive stocks such as Hyundai Motor (005380) and Kia (000270) saw gains of over 3%, while secondary battery stocks like LG Energy Solution (373220) and POSCO Holdings (005490) also rose as concerns over tariffs eased. Conversely, shipbuilding stocks like HD Hyundai Heavy Industries (329180) and Hanwha Ocean (042660), which had surged the previous day, were on the decline.

At the same time, the KOSDAQ index also rose by 9.08 points (1.23%) to 746.98. The index opened at 743.35, up 5.45 points (0.74%), and continued to widen its gains.

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