South Korean stocks soared to an unprecedented record high, pushing past the 8,000-point mark on Tuesday, driven by escalating hopes for a potential US-Iran deal that could lead to the reopening of the vital Strait of Hormuz.
The benchmark Korea Composite Stock Price Index (KOSPI) witnessed a robust ascent, climbing 183.8 points, or 2.34 percent, to settle at 8,031.51 as of 9:15 a.m. This significant surge marks the first occasion the KOSPI has breached the 8,000-point threshold since May 15, reflecting renewed investor confidence in the South Korean market.
The positive market sentiment stemmed from overnight developments where US President Donald Trump characterized ongoing peace negotiations with Iran as progressing “nicely.” However, he also issued a stern warning of potential fresh attacks should the talks falter, adding a layer of caution to the optimism. Nevertheless, the prospect of a de-escalation significantly influenced global oil markets.
Amid widespread optimism for a possible end to the geopolitical tensions, global oil prices experienced a sharp decline. Brent crude, a key international benchmark, plummeted 7 percent to $96 per barrel, while US West Texas Intermediate (WTI) futures dropped 6.5 percent to $90, signaling relief over potential supply stability.
Leading the charge among South Korean blue-chip stocks, market bellwether Samsung Electronics advanced 2.14 percent, while its semiconductor rival SK Hynix saw an impressive jump of 4.22 percent. Automotive giant Hyundai Motor gained a solid 2.6 percent, and leading battery manufacturer LG Energy Solution added 2.76 percent to its value.
Further demonstrating broad-based gains across various key sectors, major shipbuilder Hanwha Ocean shot up 4.17 percent, and pharmaceutical powerhouse Samsung Biologics climbed 1.06 percent, underscoring the widespread positive market momentum that propelled the KOSPI to its historic high.
