Seoul shares experienced a significant surge, climbing over 2% on Wednesday to close above 6,000 points for the first time since the US-Iran conflict in late February. The Korean won also strengthened against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose by 123.64 points, or 2.07%, reaching a closing figure of 6,091.39, with trading volume hitting 915.03 billion shares valued at 31.37 trillion won (US$21.3 billion).
Foreign investors were net buyers, acquiring stocks worth 552.19 billion won, which offset net selling by institutions and individuals. The positive market sentiment was fueled by expectations of a potential second round of peace talks between the US and Iran, following the recent blockade of the Strait of Hormuz by the US military. Despite ongoing Middle East tensions, Brent crude prices dropped nearly 5% to below $95 per barrel.
The market’s upward trend was also influenced by gains in Wall Street, with the Dow Jones Industrial Average rising by 0.66% and the Nasdaq composite by 1.96%. Analysts highlighted that the upcoming release of first-quarter earnings by major companies, alongside hopes for Middle East negotiations, provided further momentum to the market. Notably, tech and auto stocks led the market gains, with Samsung Electronics, SK hynix, Hyundai Motor, and Kia Corp. all registering notable increases.
