Seoul stocks, which initially rose, saw a decrease in gains despite reduced military tensions between the United States and Iran. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 0.83 percent to 5,450.77 by late Tuesday morning, up 45.02 points.
The market’s earlier 4 percent surge at the opening bell waned as foreign investors exerted selling pressure, according to Yonhap news agency. Major U.S. stock indexes closed higher following President Donald Trump’s decision to delay attacks on Iranian energy facilities after discussions with Iran.
Trump’s initial threat to target Iran’s power plants if the Strait of Hormuz was not opened by Monday evening was met with a warning from Iran of possible retaliation. This situation raised hopes for reduced Middle East tensions and stabilized oil prices.
South Korea’s exports surged over 50 percent year-on-year as of Friday, driven by semiconductor exports reaching a new monthly peak. Large-cap shares showed mixed trading, with Samsung Electronics up 1.18 percent and SK hynix rising by 2.47 percent.
Hyundai Motor, the top carmaker, saw a 1.24 percent increase, while defense giant Hanwha Aerospace advanced by 1.72 percent. Financial group KB Financial remained steady. The South Korean won strengthened against the U.S. dollar, recovering from a 17-year low in the previous session.
The won opened at 1,490.9 per dollar, up 26.4 won from the previous session’s 1,517.3 won. Trump’s decision to postpone strikes on Iranian energy infrastructure led to this recovery. The global financial markets faced increased volatility due to escalating U.S.-Israeli strikes on Iran.
Trump’s announcement of a five-day delay in planned strikes on Iranian energy facilities aimed at fostering discussions to end the Middle East conflict.
