South Korea’s benchmark stock index, the Kospi, surged past its pre-Middle East crisis high on Tuesday, signaling a strong potential for a new record. This positive momentum indicates a significant recovery for the Seoul stock market.
Following a robust open, the Kospi index climbed to approximately the 6,350-point level by 10:00 a.m., marking an impressive gain of over 2 percent from the prior trading session’s close. This rally surpasses the previous high of 6,307.27, which was recorded on February 26.
Previously, Seoul shares experienced extreme volatility in the wake of the conflict between the United States and Iran. The country’s benchmark index saw dramatic swings, plummeting by as much as 12 percent on one trading day and surging by 9 percent on another, reflecting market instability.
However, the market is now showing signs of reduced sensitivity to the uncertainties stemming from the Strait of Hormuz and the broader Middle East crisis, according to Han Ji-young, an analyst at Kiwoom Securities. Han noted, “Market volatility has eased to some degree, even as global stock markets have been also roiled by developments in the Middle East crisis,” suggesting a localized resilience for the South Korean market.
