South Korean stocks surged higher on Friday’s opening, buoyed by optimistic reports indicating that the United States and Iran have successfully reached an agreement to extend their current ceasefire.
The benchmark Korea Composite Stock Price Index (KOSPI) experienced a significant rally, adding 217 points, or 2.65 percent, to reach 8,402.29 within the first 15 minutes of trading.
This robust performance followed a slight dip on Thursday, where the index fell 0.53 percent after closing above the critical 8,200-point level for two consecutive days prior.
Investor confidence received a substantial boost from overnight reports that Washington and Tehran had reportedly agreed to a memorandum of understanding. This accord aims to extend a ceasefire for 60 days and facilitate the resumption of crucial talks concerning Iran’s nuclear program.
The positive sentiment extended to Wall Street, where all three major US indexes recorded new closing highs, driven by optimism regarding developments in the Middle East. The Dow Jones Industrial Average registered a gain of 0.05 percent, the S&P 500 advanced by 0.58 percent, and the Nasdaq Composite climbed 0.91 percent.
In Seoul, the strong market opening was primarily spearheaded by impressive performances from the semiconductor and automotive sectors.
Market bellwether Samsung Electronics saw its shares advance by 4.34 percent, while its key chipmaking rival, SK hynix, also posted solid gains of 3.06 percent.
Leading automaker Hyundai Motor vaulted an impressive 6.5 percent, and its auto parts manufacturing affiliate, Hyundai Mobis, also jumped significantly by 7 percent.
Technology stocks also showed strong momentum, with internet giant Naver surging 9.02 percent. Its domestic competitor, Kakao, also moved up by 6.23 percent.
