South Korean stocks surged at the opening bell Tuesday, fueled by investor optimism regarding potentially easing military tensions in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) initially opened 4.25 percent higher and continued its ascent, gaining 196.33 points, or 3.63 percent, to reach 5,602.08 within the first 15 minutes of trading.
This rebound follows a sharp decline of over 6 percent in the previous trading session.
The positive sentiment mirrors overnight gains on Wall Street, where major stock indexes closed more than 1 percent higher. This followed statements by US President Donald Trump indicating that the United States and Iran had engaged in talks and that he had ordered a five-day postponement of strikes targeting Iranian power plants and energy infrastructure.
This development has instilled hope among investors that the instability in the Middle East may soon subside, potentially leading to a stabilization of rising oil prices.
Brent crude oil, the international benchmark, experienced a significant drop of over 10 percent in the previous session after Trump’s announcement.
In Seoul, the majority of market heavyweights are experiencing upward momentum.
Samsung Electronics shares increased by 3.76 percent, while its competitor in the chip manufacturing industry, SK hynix, saw a rise of 6 percent.
Leading automaker Hyundai Motor demonstrated strength with a 3.04 percent gain, defense industry leader Hanwha Aerospace advanced by 1.64 percent, and major financial institution KB Financial moved upward by 1.72 percent.
