South Korean stocks experienced a significant surge at the opening on Wednesday, fueled by optimism surrounding a potential resolution to the ongoing conflict in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) initially jumped 5.49 percent and continued its upward trajectory, gaining 246.56 points, or 4.88 percent, to reach 5,299.02 within the first 15 minutes of trading.
In response to this rapid increase, the Korea Exchange, the primary stock market operator in South Korea, implemented a five-minute buy-side sidecar approximately seven minutes after the market opened. This measure temporarily suspended program trading-driven buy orders in KOSPI futures.
The market’s positive reaction follows statements made by U.S. President Donald Trump on Tuesday (US time), suggesting the possibility of concluding military operations against Iran within “two or three weeks,” emphasizing, “All I have to do is leave Iran.”
The conflict, which began in late February following reported U.S.-Israeli strikes on Iran, has contributed to rising global oil prices due to supply chain disruptions. This, in turn, has impacted global financial markets and raised concerns about inflation and potential economic slowdown.
Reflecting the positive sentiment, the Dow Jones Industrial Average in the U.S. rallied 2.49 percent, the Nasdaq composite soared 3.83 percent, and the S&P 500 index climbed 2.91 percent.
In Seoul, the majority of major capitalization stocks opened with gains.
Market heavyweight Samsung Electronics saw a significant increase of 7.21 percent, while chip manufacturer SK hynix surged 7.19 percent.
Leading automaker Hyundai Motor rose 5.33 percent, with its affiliate Kia Motors advancing 4.2 percent.
Battery manufacturer LG Energy Solution increased by 1.2 percent, and artificial intelligence investment company SK Square jumped 6 percent.
Biopharmaceutical firm Samsung Biologics gained 0.47 percent, while Celltrion rose 1.93 percent.
Defense company Hanwha Aerospace added 3.28 percent, and nuclear power plant builder Doosan Enerbility increased by 5.34 percent.
Financial services provider KB Financial grew 4.37 percent, and steelmaker POSCO rose 2.41 percent.
Shipbuilders experienced mixed results, with HD Hyundai Heavy Industries declining by 5.59 percent, while Hanwha Ocean increased by 3.24 percent.
