The **South Korean stock market** experienced a significant rally on Tuesday, with the benchmark **Korea Composite Stock Price Index (KOSPI)** climbing nearly 3 percent and edging closer to the critical 6,000-point threshold. This robust performance of **Korean stocks** was primarily driven by renewed hopes for negotiations between Washington and Tehran. Concurrently, the **local currency** demonstrated a sharp appreciation against the US dollar.
The **KOSPI index** specifically added 159.13 points, representing a 2.74 percent increase, to close at 5,967.75, after briefly touching an intraday high of 6,026.52.
This movement saw the **benchmark index** fluctuate above and below the 6,000-point mark, a dynamic not witnessed since March 3. On that date, the index traded at 6,180.45, marking the first trading day following the air strikes on Iran carried out by the United States and Israel on February 28.
Trading volume remained moderate, with 881.9 billion shares exchanged, totaling 26.7 trillion won (approximately $18 billion). Market breadth was positive, as gainers significantly outnumbered losers, 669 to 197.
Foreign investors and institutions were net buyers, acquiring 830 billion won and 1.25 trillion won, respectively, while individual investors sold off a net 2.4 trillion won.
Recent geopolitical tensions included a US military blockade of the Strait of Hormuz, initiated on Monday, following the breakdown of weekend talks between Washington and Tehran in Islamabad, Pakistan.
However, optimism surged after Donald Trump stated that Iran was open to reaching a deal with the US, fueling expectations that the two sides could resume **US-Iran negotiations**.
“Investors are now anticipating a second round of peace talks between the US and Iran following Trump’s remarks,” commented Kang Jin-hyuk, an analyst at Kyobo Securities. “Adding to this sentiment, The Wall Street Journal reported that both nations have exchanged detailed terms concerning uranium enrichment, further elevating hopes for a diplomatic resolution.”
**Tech and financial shares** led the market’s upward momentum.
**Tech giant Samsung Electronics** saw its stock rise 2.74 percent to 206,500 won, while **SK Hynix** jumped an impressive 6.06 percent to 1.1 million won, ahead of its first-quarter earnings report scheduled for next week.
In the financial sector, major banking group **Hana Financial Group** increased 0.67 percent to 120,800 won, and **Samsung Fire & Marine Insurance** added 3.82 percent, closing at 489,500 won.
Other significant advancers included top carmaker **Hyundai Motor**, which gained 2.72 percent to 491,500 won, and major gamemaker **NC**, climbing 3.97 percent to 248,500 won.
Leading mobile carrier **SK Telecom** also performed well, gaining 3.24 percent to 95,500 won, alongside retail giant **Shinsegae**, which rose 1.02 percent to 346,500 won.
Conversely, **defense shares** experienced a downturn. Industry leader **Hanwha Aerospace** fell 0.46 percent to 1.52 million won, and **LIG D&A**, formerly known as LIG Nex1, declined 0.53 percent to 934,000 won.
