South Korea’s benchmark Kospi index experienced a significant surge of over 5% in early trading on Tuesday, recovering from the previous day’s sharp decline. This rebound was fueled by growing optimism regarding a potential de-escalation of tensions in the Middle East.
Following comments from US President Donald Trump on Monday suggesting a resolution to the conflict with Iran, oil prices dipped below $90 a barrel. This development positively impacted global stock markets, including the Korean market.
The Kospi opened trading substantially higher at 5,523.21, marking a 5.17% increase from the previous session’s close. The index continued its upward trajectory, reaching 5,539.49 by 9:30 a.m., representing a 5.48% gain.
This strong recovery follows a substantial 5.96% drop experienced in the previous trading session.
Shortly after the market’s opening bell, a rapid increase in Kospi 200 futures triggered a buy-side sidecar at 9:06 a.m., leading to a temporary five-minute halt of program buy orders.
Retail investors engaged in net selling, offloading shares worth 447.7 billion won ($305 million). In contrast, foreign and institutional investors were net buyers, acquiring 366.9 billion won and 106.4 billion won worth of shares, respectively.
Large-cap stocks spearheaded the market’s advance. Samsung Electronics shares soared by 8.59%, while SK hynix shares jumped by 10.29%.
The technology-focused Kosdaq index also saw strong gains, opening 4.15% higher at 1,147.99. By 9:30 a.m., the Kosdaq was trading at 1,134.52, reflecting a 2.92% increase from the previous session.
The Korean won also strengthened against the US dollar. The currency opened at 1,470.8 won per dollar, appreciating by 24.7 won from the previous day’s closing rate, and was quoted at 1,470.18 won per dollar as of 9:30 a.m.
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