South Korean stocks surged by nearly 2.5% on Friday morning as Iran and Oman are reportedly collaborating on a protocol to monitor traffic in the Strait of Hormuz, raising optimism for the reopening of this crucial shipping route. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 2.46% to reach 5,363.0, rebounding from a recent decline and driven by strong institutional buying.
Despite concerns over escalating tensions in the Middle East following U.S. President Donald Trump’s recent remarks, Iran’s Deputy Foreign Minister mentioned ongoing efforts to establish a monitoring protocol with Oman for the Strait of Hormuz. This development has sparked hopes for progress in reopening the waterway that has been effectively closed since the conflict began.
In Seoul, the market saw a boost led by major tech companies. Samsung Electronics saw a notable 3.28% increase, while SK hynix, a key player in the chip industry, surged by 5.18%. Hyundai Motor, a top automaker, also advanced by 1.29%, with its affiliate Kia rising by 0.2%.
Defence and technology firms also experienced gains, with Hanwha Aerospace climbing 2.05% and SK Square, an artificial intelligence investment firm, rising by 1.06%. Additionally, Doosan Enerbility, a nuclear power plant builder, saw a significant jump of 3.42%.
Shipbuilding companies showed positive movement as well, with HD Hyundai Heavy spiking by 9% and Hanwha Ocean increasing by 5.62%. However, LG Energy Solution, a leading battery manufacturer, and Samsung Biologics, a bio giant, faced declines of 0.87% and 1.77% respectively. Financial firm KB Financial also saw a slight decrease of 0.07%.
