South Korean stocks saw a significant rise on Thursday driven by optimism surrounding a potential peace agreement between the United States and Iran, along with the resolution of labor unrest at Samsung Electronics. The benchmark Korea Composite Stock Price Index (KOSPI) opened 3.85 percent higher and surged by 5.27 percent to reach 7,388.52 points by 9:30 a.m.
The positive momentum in the stock market led to a temporary suspension of buy-side orders in the KOSPI futures for five minutes around 9:23 a.m., as reported by the Korea Exchange. In the U.S., stock markets also experienced gains, with the S&P 500 rising by 1.08 percent, the Dow Jones Industrial Average by 1.31 percent, and the Nasdaq composite by 1.55 percent, following a decline in crude oil prices and progress in talks between the U.S. and Iran.
Investor confidence received a boost after Samsung Electronics reached a tentative agreement with its labor union, averting a major strike that was scheduled to commence on Thursday at the world’s largest memory chipmaker. Additionally, positive news from U.S. chip giant Nvidia, which forecasted second-quarter revenue exceeding Wall Street expectations and announced an $80 billion share repurchase program, further contributed to the market’s upbeat sentiment.
Major chipmakers, including Samsung Electronics and SK hynix, observed notable gains, with Samsung affiliates such as Samsung Electro-Mechanics and Samsung Life also recording significant increases in their stock prices. Auto shares also performed well, with Hyundai Motor, Kia, and Hyundai Mobis witnessing substantial growth in their stock values.
By 9:15 a.m., the Korean won was trading at 1,499.0 won against the U.S. dollar, marking an increase of 6.9 won from the previous session.
