Seoul stocks surged at the opening bell on Wednesday, fueled by growing optimism surrounding potential diplomatic progress between the United States and Iran, potentially de-escalating tensions.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed significantly, increasing by 170.22 points, a 3.06 percent jump, to reach 5,724.14 within the first 15 minutes of trading.
This positive momentum contrasts with Wall Street’s performance overnight, where major stock indexes experienced slight declines amidst mixed signals concerning US-Iran negotiations.
US President Donald Trump’s recent statements have boosted market confidence. He indicated ongoing dialogue with Iranian representatives, stating they are eager to reach an agreement. “talking to the right people,” and “they want to make a deal so badly.”
Trump further alluded to a “present” offered by Tehran, possibly related to the Strait of Hormuz, a crucial global oil transit route. The waterway’s effective closure due to recent tensions has contributed to soaring energy prices.
In Seoul, the majority of large-cap stocks experienced gains.
Leading semiconductor manufacturer Samsung Electronics saw its shares rise by 3.27 percent, while its competitor SK hynix recorded a more substantial increase of 4.26 percent.
SK hynix’s stock performance was further bolstered by the company’s announcement in a regulatory filing regarding its pursuit of a US stock market listing for its American Depository Receipts (ADRs).
Hyundai Motor, a top automobile manufacturer, gained 4.27 percent, defense industry leader Hanwha Aerospace advanced 1.5 percent, and internet portal giant Naver saw a modest increase of 1.87 percent.
