Seoul shares experienced a robust opening on Friday, tracking positive overnight performances on Wall Street, as investors embraced optimism surrounding crucial US-Iran negotiations following a recently established two-week ceasefire deal.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed significantly, adding 95.88 points, or 1.66 percent, to reach 5,873.89 by 9:15 a.m. local time.
This upward momentum in Seoul was buoyed by strong overnight sessions in the United States, where the Dow Jones Industrial Average recorded a 0.58 percent gain and the tech-heavy Nasdaq Composite advanced by 0.83 percent.
Further fueling market optimism regarding regional stability, Israeli Prime Minister Benjamin Netanyahu confirmed on Thursday the approval of direct negotiations with Lebanon. These talks are geared towards disarming Iranian-backed Hezbollah militants operating within Lebanon, marking a significant step towards de-escalation.
This development follows Netanyahu’s earlier statements clarifying that a direct ceasefire agreement between Israel and Lebanon was not yet in place, making the approval of negotiations a pivotal move.
The main focus remains on the upcoming weekend, when the United States and Iran are scheduled to commence crucial negotiations to formalize the terms of their two-week ceasefire agreement.
US President Donald Trump also expressed optimism overnight regarding a potential deal with Iran, though he issued a stern warning to Tehran concerning any interference with shipping activities in the strategically vital Strait of Hormuz.
Reflecting the broader market sentiment, the majority of large-cap stocks posted gains during morning trading.
Market bellwether Samsung Electronics saw its shares rise by 1.72 percent, while its key chip manufacturing competitor, SK hynix, experienced an even more significant jump of 3.21 percent.
Among other prominent sectors, top carmaker Hyundai Motor advanced 0.72 percent, and leading shipbuilder HD Hyundai Heavy Industries also saw an increase of 1.06 percent.
Conversely, some stocks faced downward pressure; Asiana Airlines dipped 0.28 percent, and leading battery manufacturer LG Energy Solution registered a decline of 1.43 percent.
