South Korean stocks surged to a new high, exceeding 6,700 on Monday, driven by US President Donald Trump’s announcement of plans to free vessels stranded in the vital Strait of Hormuz. This positive market reaction also followed Washington and Tehran reportedly exchanging proposals for potential peace talks.
The benchmark Korea Composite Stock Price Index (KOSPI) specifically opened at a robust 6,782.93, marking a significant increase of 184.06 points, or 2.79 percent, reflecting strong investor confidence.
This surge comes after the KOSPI had achieved an all-time high of 6,690.90 on Thursday, following three consecutive rising sessions, though it experienced a slight dip of 1.38 percent to 6,598.87 on Friday.
Overnight, President Trump announced via social media that the United States would launch a humanitarian initiative to assist ships trapped in the crucial Strait of Hormuz. This gesture aims to support neutral nations amidst the ongoing US-Israeli conflict with Iran.
The Strait of Hormuz, a critical global shipping route, has seen severe disruptions, with Iran enforcing a blockade on nearly all Persian Gulf shipping for over two months. Concurrently, the US implemented its own blockade on vessels originating from Iranian ports last month.
