South Korean stocks rebounded strongly on Tuesday, recovering from a significant drop the previous day. Market sentiment was boosted by US President Donald Trump’s indication that a US-Iran war “is very complete,” easing geopolitical tensions.
The benchmark Korea Composite Stock Price Index (KOSPI) surged 271.34 points, a 5.17 percent increase, reaching 5,523.21 at the opening bell.
Overnight in the US, the Dow Jones Industrial Average rose 0.5 percent, the Nasdaq Composite climbed 1.38 percent, and the S&P 500 gained 0.83 percent. This positive momentum followed a 5.96 percent decline in the KOSPI on Monday.
President Trump’s statement during a CBS News interview, suggesting a resolution to potential conflict with Iran, contributed to a sharp decrease in global crude oil prices and calmed investor anxieties.
In the previous trading session, the Korea Exchange implemented a circuit breaker on the main bourse due to extreme market volatility, halting trading for 20 minutes to stabilize the market.
