Sino-US tariff negotiations show improvement, boosting confidence; South Korean stocks and bonds saw net purchases by foreign investors in July.

The Bank of Korea said on Tuesday that driven by the optimistic prospects of US tariff negotiations and strong performance of local businesses, foreign investment in South Korean securities and bonds showed a net inflow in July. Bank of Korea data showed that foreign investors net bought $4.83 billion worth of South Korean stocks and bonds last month. By category, foreign investors net bought $2.4 billion worth of local stocks, and also net bought $2.43 billion worth of local bonds. The Bank of Korea pointed out that South Korea has seen three consecutive months of net foreign inflows since May, although the inflow in July was slightly lower than June's $5.08 billion. The Bank of Korea stated, "Expectations that uncertainties in the South Korea-US tariff negotiations will ease, along with positive performance of local businesses, have driven foreign investment inflow into the stock market."