South Korean stocks saw a significant rise on Tuesday following a previous sharp decline, with the Korea Composite Stock Price Index (KOSPI) jumping 5.17 percent to 5,523.21 at the opening bell. This surge came after US President Donald Trump suggested that the US-Iran war “is very complete.”
The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 also experienced gains overnight, with the KOSPI having fallen 5.96 percent the day before. Trump’s remarks during an interview with CBS News about the completion of the war with Iran impacted global crude prices.
In response to extreme market volatility, the Korea Exchange (KRX) activated a circuit breaker during the previous session, leading to a 20-minute trading suspension on the main bourse. This marked the second activation of a circuit breaker in a single month, the first being in March 2020 during the COVID-19 pandemic.
Investors sought bargains after the previous session’s decline, reacting to reports of Trump’s statement on the US-Iran war. This led to a morning rally, with top companies like Samsung Electronics and SK hynix experiencing significant stock price increases.
Air carriers also benefited from falling crude prices, with Korean Air and Asiana Airlines witnessing positive trading. Meanwhile, oil refiners showed mixed performance, and financial institutions like KB Financial and Shinhan Financial saw gains.
The Korean won was trading at 1,471.5 won against the U.S. dollar, marking an increase of 24 won from the previous session.
