Kospi closes up 0.14% as markets process Trump assassination attempt

The Kospi rose 3.92 points, or 0.14 percent, to 2,860.92, as investors expressed more certainty that former U.S. President Donald Trump will win in November.

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,860.92 points on Monday, up 0.14 percent, or 3.92 points, from the previous trading session. [YONHAP]

Shares closed slightly higher Monday as investors digested the aftermath of the assassination attempt on former U.S. President Donald Trump over the weekend. The local currency fell in value against the dollar.

The Kospi rose 3.92 points, or 0.14 percent, to 2,860.92.

Trade volume was moderate at 418 million shares worth 12 trillion won ($8.67 billion), with gainers outnumbering losers 491 to 381. Foreigners sold a net 80.7 billion won, while individuals offloaded a net 28.9 billion won. Institutions purchased a net 121.7 billion won.

Trump was injured when a gunshot struck his ear during a campaign rally in Pennsylvania on Saturday.

The incident spurred investment firms that spoke to Reuters to express more concrete expectations of a Trump victory in November and act accordingly in anticipation of the protectionism and stronger dollar likely to result.

"As Trump seeks an exit from NATO, European countries may expand their defense budgets to establish their own defense systems," said Ha In-hwan, an analyst at KB Securities.

"The strong U.S. dollar may also continue on the back of the reshoring of the manufacturing sector into the United States," he added.

Defense shares closed higher on the perceived increase in the possibility of a Trump victory, with Hyundai Rotem rising 7.51 percent to 42,950 won and LIG Nex1 climbing 13.35 percent to 233,500 won. Hanwha Aerospace jumped 4.54 percent to 265,000 won.

Tech shares finished mixed. Samsung Electronics rose 2.73 percent to 86,700 won while SK hynix lost 1.29 percent to 230,000 won.

Financial firms closed lower, with KB Financial losing 1.49 percent to 85,700 won and Shinhan Financial decreasing 1.15 percent to 51,800 won.

Carmakers finished bearish as well. Hyundai Motor plunged 1.1 percent to 268,500 won and Kia moved down 1.07 percent to 120,000 won.

The local currency was trading at 1,382.8 won against the dollar as of 3:30 p.m., up 3.2 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds fell 2.0 basis points to 3.083 percent, and the return on the benchmark U.S. 10-year benchmark bonds dropped 3.0 basis points to 4.183 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]