South Korean stocks rose by 6% to surpass the 7,300-point milestone on Wednesday. The surge was driven by strong performances in semiconductor shares and positive expectations for a peace agreement between the United States and Iran. The benchmark Korea Composite Stock Price Index (KOSPI) opened 2.25% higher and continued to climb, reaching an all-time high of 7,355.81.
The stock market rally prompted the bourse operator to implement a brief halt on program-driven buy orders in KOSPI futures. This upward trend followed U.S. President Donald Trump’s decision to pause efforts to navigate ships through the Strait of Hormuz in order to finalize a deal with Iran. Semiconductor stocks, particularly Samsung Electronics and SK hynix, led the market surge with notable gains.
In Seoul, Samsung Electronics saw a significant increase of 12.47%, while SK hynix surged by 10.3%. Additionally, chip equipment manufacturer Hanmi Semiconductor experienced a rise of 1.59%. On the other hand, defense shares, including Hanwha Aerospace and Hyundai Rotem, faced declines amidst the overall market growth.
Hyundai Motor, the leading carmaker, advanced by 2.23%, and its auto parts affiliate Hyundai Mobis also saw a modest increase of 0.46%. The Korean won was trading at 1,457.6 won against the U.S. dollar, reflecting a slight uptick from the previous session. Moreover, consumer prices in South Korea recorded a notable increase in April, primarily fueled by rising fuel costs amid the ongoing Middle East conflict.
