South Korean stocks opened higher on Friday, recovering from significant losses in the previous session. Investor optimism grew amid hopes for the potential reopening of the Strait of Hormuz, despite the ongoing conflict in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) initially surged 2.7 percent upon opening. In the first 15 minutes of trading, the KOSPI climbed 172.7 points, a 3.3 percent increase, reaching 5,406.75.
In a primetime address delivered Wednesday, US President Donald Trump announced the United States would aggressively target Iran “extremely hard over the next two to three weeks” and “bring them back to the Stone Age,” though a concrete timeline for conflict resolution was not provided.
This warning of escalated military actions tempered expectations for a quick resolution to the month-long conflict. The situation has already caused a surge in oil prices due to supply chain disruptions, creating volatility in financial markets, and raising concerns about potential inflation and economic slowdown.
However, Iran’s Deputy Foreign Minister, Kazem Gharibabadi, announced that Tehran is collaborating with Oman to draft a protocol for monitoring traffic in the Strait of Hormuz. This protocol would necessitate ships to acquire permits and licenses, according to international media reports.
This development has sparked optimism about the potential reopening of the strategically vital waterway, which has been effectively closed since the onset of the war in late February, contributing to a decrease in global oil prices.
Overnight trading saw mixed results in the US markets. The Dow Jones Industrial Average experienced a slight decrease of 0.13 percent, while the Nasdaq composite rose by 0.18 percent. The S&P 500 index showed a gain of 0.11 percent.
In Seoul, the majority of large-cap stocks opened with gains.
Market heavyweight Samsung Electronics saw a significant increase of 4.71 percent, while semiconductor giant SK hynix jumped 6.51 percent.
Leading automaker Hyundai Motor rose by 3.22 percent, and its affiliate Kia saw an increase of 2.92 percent.
Prominent battery manufacturer LG Energy Solution grew by 0.74 percent, and artificial intelligence investment firm SK Square climbed 3.41 percent.
Biopharmaceutical giant Samsung Biologics increased by 0.5 percent, while Celltrion gained 0.92 percent.
Defense industry leader Hanwha Aerospace went up by 0.42 percent, and nuclear power plant builder Doosan Enerbility increased by 3.21 percent. Leading financial firm KB Financial increased 0.82 percent.
Shipbuilding companies also saw gains, with local industry leader HD Hyundai Heavy rising by 4.56 percent and its rival Hanwha Ocean increasing by 2.51 percent.
