South Korean stocks began trading with gains on Thursday, buoyed by signals from US President Donald Trump suggesting a potential resolution to the ongoing conflict in the Middle East.
The Korea Composite Stock Price Index (KOSPI) initially opened 1.33 percent higher and continued its ascent, climbing 63.11 points, or 1.15 percent, to reach 5,541.81 within the first 15 minutes of trading.
Trump’s comments in a Reuters interview on Wednesday hinted at a swift US withdrawal from Iran, with the possibility of targeted interventions if needed. This statement provided a positive outlook for investors.
Adding to the market sentiment, a post on Truth Social by Trump claimed that Iran’s “new regime president” requested a ceasefire. However, Iran’s foreign ministry has refuted these claims as “false and baseless.”
The market is anticipating a public address from Trump at 10 a.m. concerning the situation in the Middle East, which could further influence trading.
Overnight in the US, major indices saw gains, with the Dow Jones Industrial Average increasing by 0.48 percent, the Nasdaq composite rising by 1.16 percent, and the S&P 500 up by 0.72 percent.
The conflict, which intensified in late February following US-Israeli strikes on Iran, has caused volatility in global oil prices due to supply chain disruptions. This has consequently impacted financial markets and raised concerns about inflation and a possible economic slowdown.
In Seoul, most major large-cap stocks opened with positive momentum.
Market heavyweight Samsung Electronics saw an increase of 0.47 percent, while semiconductor giant SK hynix rose by 0.67 percent.
Leading automotive manufacturer Hyundai Motor experienced a gain of 0.72 percent, and its affiliate Kia Motors increased by 1.42 percent.
Prominent battery producer LG Energy Solution surged by 2.58 percent, and artificial intelligence investment company SK Square climbed by 1.4 percent.
Biopharmaceutical giant Samsung Biologics jumped by 3.82 percent, while Celltrion’s stock remained stable.
Defense industry leader Hanwha Aerospace witnessed a significant spike of 8.4 percent, and nuclear power plant constructor Doosan Enerbility increased by 0.8 percent.
Major financial institution KB Financial rose by 3.57 percent, and leading steelmaker Posco increased by 3.61 percent.
Shipbuilding companies also showed positive performance, with industry leader HD Hyundai Heavy adding 2.44 percent and its competitor Hanwha Ocean surging by 3.62 percent.
