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Seoul Stocks Surge Past 6,000 as US-Iran Deal Hopes Boost Market

Seoul's benchmark KOSPI index surged more than 2% to close above 6,091 points, marking its first finish above the 6,000 threshold since the US-Iran conflict escalated in late February. The rally was driven by risk-on sentiment amid hopes for a second round of peace talks between Washington and Tehran, coupled with strong net buying by foreign investors. Tech giants like Samsung Electronics and SK hynix, along with automakers Hyundai Motor and Kia Corp., led the gains. The positive momentum also tracked overnight gains on Wall Street and a significant drop in Brent crude oil prices.

Key Points: Seoul Shares Soar Above 6,000 on US-Iran Peace Hopes

  • KOSPI gains 2.07%
  • Foreigners net buyers of 552B won
  • Tech and auto stocks lead rally
  • Brent crude falls below $95
  • Won strengthens against dollar
2 min read

Seoul shares end above 6,000 for the 1st time since US-Iran conflict

KOSPI jumps over 2%, closing above 6,000 points for the first time since February, fueled by optimism over renewed US-Iran talks and strong foreign buying.

"Major companies' planned release of first-quarter earnings results... has reemerged as a positive driver - Lee Kyung-min, Daishin Securities"

Seoul, April 15

Seoul shares soared more than 2 per cent on Wednesday to close above 6,000 points for the first time after the outbreak of the US-Iran conflict in late February. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 123.64 points, or 2.07 percent, to close at 6,091.39, after hitting an intraday high of 6,183.21, reports Yonhao news agency.

Trading volume was heavy at 915.03 billion shares worth 31.37 trillion won (US$21.3 billion), with gainers outnumbering losers 570 to 273.

Foreigners purchased a net 552.19 billion won worth of stocks, offsetting net selling by institutions and individuals amounting to 22.37 billion won and 935.64 billion won, respectively.

Risk-on sentiment emerged amid hopes that Washington and Tehran would hold a second round of peace talks after their first round ended without agreement.

The U.S. military began a blockade of the Strait of Hormuz on Monday following the breakdown of weekend talks in Islamabad, Pakistan, between Washington and Tehran.

However, U.S. President Donald Trump said Iran wants to reach a deal with the United States, raising expectations that the two sides could return to negotiations.

Despite ongoing tensions in the Middle East, Brent crude fell nearly 5 percent to below $95 per barrel on Tuesday.

The main index also tracked overnight gains on Wall Street, where the Dow Jones Industrial Average rose 0.66 percent and the Nasdaq composite gained 1.96 percent.

"Major companies' planned release of first-quarter earnings results later this month has reemerged as a positive driver and upside momentum for the market amid deal hopes in the Middle East," said Lee Kyung-min, an analyst at Daishin Securities Co.

Tech and auto stocks led the gains.

Market bellwether Samsung Electronics rose 2.18 percent to 211,000 won, while its chip rival SK hynix climbed 2.99 percent to a record high of 1,136,000 won.

Top carmaker Hyundai Motor jumped 3.36 percent to 508,000 won, and its smaller affiliate Kia Corp. gained 1.54 percent to 151,500 won.

Among decliners, defence giant Hanwha Aerospace Industries fell 0.92 percent to 1,509,000 won, while Korea Aerospace Industries declined 1.71 percent to 190,000 won.

The local currency was quoted at 1,474.20 won against the greenback as of 3:30 p.m., up 7 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.1 basis points to 3.328 percent, and the return on the benchmark five-year government bonds declined 0.3 basis point to 3.516 percent.

- IANS

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Reader Comments

S
Sarah B
Interesting analysis. The fall in Brent crude is the real story for India. Every dollar drop in oil is a relief for our import bill and inflation. Hope the trend continues. The focus on tech and auto stocks in Seoul mirrors global sector rotations.
V
Vikram M
Foreigners buying net 552 billion won worth of stocks is huge! Shows FIIs are returning to risk assets. This should be a signal for our markets as well. When global risk-on sentiment is back, India often sees strong FII inflows. Good time for investors to stay put.
R
Rohit P
While the news is good, a word of caution. Markets are celebrating peace talks that haven't even been confirmed. The US blockade of Strait of Hormuz is still on. This feels like a speculative rally. Our own investors should not get carried away by such short-term triggers. Do your own research.
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Priya S
Samsung and Hyundai leading the gains! As an Indian consumer and investor, it's fascinating to see how these global Korean giants impact their home index. We have similar heavyweights like Reliance and TCS that drive our Sensex. Global economic interconnectedness is real.
K
Karthik V
The strengthening Won against the Dollar is noteworthy. When major Asian currencies gain strength, it indirectly supports the Rupee by reducing broad Dollar demand. Hope RBI is watching these developments. A stable external environment helps our macroeconomic stability.

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