Seoul stocks showed significant gains on Monday morning, with the Korea Composite Stock Price Index rising by 1.32 percent to 6,273.71. This increase occurred amidst concerns over escalating tensions between the United States and Iran in the Middle East. President Donald Trump’s announcement of the seizure of an Iranian-flagged vessel in the Gulf has raised apprehensions, with Iran denouncing the action as a violation of the ceasefire.
Investors are closely monitoring the potential for a second round of peace talks between the U.S. and Iran. Reports suggest that Tehran, as per its state media, has indicated no intention to participate in such talks. In Seoul, many large-cap shares were trading higher, with notable gains seen in major chipmakers like Samsung Electronics and SK hynix. SK hynix is preparing to unveil its first-quarter earnings this week.
Furthermore, Hanwha Aerospace, a defense giant, saw a 0.35 percent increase, while KB Financial, a major financial firm, edged up by 0.12 percent. However, Hyundai Motor, the leading car manufacturer, experienced a slight decline of 0.37 percent. The local currency was quoted at 1,474.1 won against the U.S. dollar, marking a 9-won increase from the previous session.
During his farewell ceremony in Seoul, outgoing Bank of Korea (BOK) Gov. Rhee Chang-yong emphasized the challenges of achieving economic stability and growth solely through monetary and fiscal policies. Rhee advocated for a more comprehensive role for the central bank in addressing long-term structural issues. As Rhee completed his four-year term, Governor-designate Shin Hyun-song is poised to assume office pending parliamentary approval later in the day.
