Seoul’s stock market opened significantly higher on Thursday, buoyed by robust investor sentiment. This optimism was primarily fueled by hopes of a potential resolution to the Iran war, following President Donald Trump’s announcement that the U.S. had achieved a “great settlement.”
The benchmark Korea Composite Stock Price Index (Kospi) started the day 6.44 percent higher. By 9:15 a.m., the Kospi had surged by 577.61 points, marking an impressive 7.44 percent gain to reach 8,341.56.
This strong performance in South Korean equities mirrored the positive momentum seen overnight on Wall Street, where major stock indexes also closed with sharp advances.
President Trump confirmed on Thursday his decision to cancel planned military strikes and bombing against Iran. He asserted that a “settlement” had been reached and a deal was imminent, potentially to be signed in Europe as early as this weekend. However, Iran has not yet corroborated these claims.
Amidst these geopolitical developments, data revealed a separate economic concern: U.S. producer inflation recorded its largest annual increase in approximately three years in May. The ongoing Middle East crisis contributed to a rise in energy product costs, sparking speculation that the U.S. Federal Reserve might accelerate its monetary tightening measures to curb rising inflation.
“Several positive factors are currently influencing the market, including the possibility of a memorandum of understanding being signed between the U.S. and Iran, alongside the strong performance of semiconductor stocks in the U.S.,” commented Han Ji-young, an analyst at Kiwoom Securities.
Indeed, stocks across various sectors experienced widespread gains.
Technology leaders saw substantial increases, with chip giant Samsung Electronics leaping 10.79 percent and its industry counterpart SK hynix adding 8.76 percent.
Other prominent companies also performed well: top carmaker Hyundai Motor advanced 5.53 percent, defense giant Hanwha Aerospace climbed 4.44 percent, and electronics maker LG Electronics moved up 6.19 percent.
