South Korean stock markets rapidly rebounded Thursday, after the triumph of US President-elect Donald Trump, but individual shares showed mixed reactions, with biomedicine, refinery and defense manufacturers rising while exporters fell.

Along with Japan’s Nikkei opening about 6 percent higher in the morning compared to Wednesday’s close, Seoul’s main bourse Kospi started the day 1.87 percent higher than the previous day. The secondary Kosdaq opened at 615.16, 2.57 percent higher.

The Kospi finished at 2,002.60, up 2.26 percent, while the Kosdaq closed at 623.23, up 3.92 percent. 

The Shanghai Composite Index rebounded 1.3 percent, while Hong Kong H Shares jumped 2.18 percent. The rallies on the Kospi and other Asian stock indexes were backed by bullish US markets that closed in upbeat moods Wednesday, market watchers here said.

According to a report released by Samsung Securities on Thursday, the local markets might recover quickly from the “Trump shock.”

“Market volatilities might be highlighted in the short run due to investors’ strong preference for safe havens, but in the long run, equity markets around the world may stay strong due to Trump’s stock market-friendly policies and aggressive investments in infrastructure,” it said.

Biomedicine equities that have been bearish in recent months, picked up, gaining momentum backed by one of Trump’s campaign pledges that he would remove regulations on increases in drug prices.

Hanmi Pharmaceutical, Yuhan Corp. and Daewoong Pharmaceutical on the Kospi showed strong rallies of 6 to 12 percent in the morning. In particular, Hanmi under the investigation by the financial authorities on possibly illegal insider trading, surged 12.15 percent to 401,500 won. On the Kosdaq, the top biosimilar maker Celltrion rose 4.61 percent to 106,700 won.

Influenced by Trump’s energy policies that favor traditional energy industries, refinery shares including SK Innovation and S-oil showed increases. Trump is opposed to developing renewable energy.

Defense-related stocks started rallying Wednesday, as the Republican candidate began to lead in vote counts, and continued to rise the following day. Hanwha Techwin climbed 4.95 percent, while LIG Nex1 rose 1.97 percent.

On the other hand, the worries of Korean exporters were already reflected in some leading exporters’ shares, including information technology and automobile manufacturers.

One of the biggest victims of Trump’s victory will be Korean smartphone makers, said Park Hyoung-woo, an analyst at SK Investment & Securities.

“As Trump has repeated many times during his campaigns, exports of Korean IT products to the US are expected to decline,” Park said. “Among all IT products, smartphone makers will take the biggest blow, if the US raises tariffs on them.”

However, researchers at NH Investment & Securities forecast that the impact will be more segmented within the IT industry.

Korean semiconductor businesses might benefit from the incoming Trump administration, taking advantage of potential trade conflicts between the US and China.

“It is likely that Chinese chipmakers may be blocked by higher barriers by the Trump administration,” said Lee Se-cheol, an NH researcher. “But global demand for chips will significantly rise, in which Korean chipmakers find more opportunities.”

By Song Su-hyun(song@heraldcorp.com)