On Monday, South Korea’s primary stock exchange operator initiated a buy-side sidecar mechanism for the benchmark Korea Composite Stock Price Index (KOSPI) after the index experienced a rapid surge. This significant market move was directly fueled by news of a breakthrough peace agreement between the United States and Iran.
As a direct consequence of the sharp market rally, automated program trading for KOSPI-listed shares was temporarily halted for a five-minute period, commencing shortly after the market’s opening. This measure was confirmed by the Korea Exchange (KRX), the nation’s sole securities exchange operator.
By 9:07 a.m. local time, the KOSPI had climbed an impressive 327.7 points, marking a substantial 4.03 percent increase to reach 8,451.32.
The dramatic gains witnessed across the KOSPI were primarily driven by robust investor activity, particularly in blue-chip technology stocks. This surge followed an announcement by U.S. President Donald Trump, confirming that the United States and Iran had successfully brokered a deal to conclude their protracted conflict in the Middle East and facilitate the reopening of the crucial Hormuz Strait.
A formal signing ceremony to finalize this landmark agreement is anticipated for Friday.
