South Korean stocks saw a significant rise on Tuesday, driven by optimism surrounding potential peace talks between the US and Iran. The benchmark Korea Composite Stock Price Index (KOSPI) surged by 3.25 percent to reach 5,997.65, briefly surpassing the 6,000-point milestone for the first time since the onset of the US-Iran conflict. This increase marked the first time the index moved above 6,000 since March 3.
The positive momentum continued as the index reached 6,000.18 around 10:12 a.m. and remained close to the 6,000 level. Following the US and Israel’s airstrikes on Iran on Feb. 28, the KOSPI had dropped by 7.28 percent to close at 5,791.91 on March 3. The recent surge in stock prices was also influenced by the US decision to maintain diplomatic engagement with Tehran despite recent tensions.
Tech and shipbuilding sectors in Seoul particularly flourished during this period. Samsung Electronics, a key player in the market, witnessed a 3.73 percent increase, while SK hynix, a major chip manufacturer, saw a notable jump of 7.5 percent. Additionally, leading shipbuilders like Hyundai Heavy Industries and Hanwha Ocean experienced gains of 1.73 percent and 2.83 percent, respectively.
The automotive industry also showed strength, with Hyundai Motor, a prominent carmaker, rising by 3.97 percent, and its affiliate Kia registering a 2.04 percent increase. Concurrently, the local currency was trading at 1,483.05 won against the US dollar at 11:20 a.m., reflecting a 6.15 won rise from the previous session.
