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Seoul Stocks Surge on US-Iran Ceasefire Hopes, KOSPI Jumps 1.8%

Seoul shares extended gains, with the KOSPI rising sharply by over 1.7% on Friday morning. The advance tracked overnight gains on Wall Street, fueled by investor optimism over upcoming US-Iran negotiations to formalize a ceasefire. Sentiment was also supported by diplomatic moves in the Middle East, including Israeli approval for talks with Lebanon. Institutional and foreign investors were net buyers, boosting major large-cap stocks like Samsung Electronics and SK hynix.

Key Points: Seoul Shares Gain on US-Iran Ceasefire Optimism

  • KOSPI rose 1.79%
  • US-Iran talks set for weekend
  • Foreign investors were net buyers
  • Samsung and SK hynix shares gained
  • Currency strengthened against dollar
2 min read

Seoul shares extend gains on US-Iran ceasefire optimism

Seoul's KOSPI rose sharply, tracking Wall Street gains as optimism grows over US-Iran ceasefire talks and Middle East diplomacy.

"I am optimistic about reaching a deal - Donald Trump"

Seoul, April 10

Seoul shares extended gains late on Friday morning, tracking overnight advances on Wall Street amid optimism over upcoming negotiations between the United States and Iran following their two-week ceasefire deal in the Middle East conflict.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 103.21 points, or 1.79 percent, to 5,881.22 as of 11:20 a.m.

Overnight, the Dow Jones Industrial Average gained 0.58 percent, while the tech-heavy Nasdaq Composite advanced 0.83 percent, reports Yonhap news agency.

Investor sentiment was supported by geopolitical developments in the Middle East. Israeli Prime Minister Benjamin Netanyahu on Thursday approved direct talks with Lebanon aimed at disarming Iran-backed Hezbollah militants, in a move seen as potentially reinforcing ceasefire efforts.

Netanyahu earlier said no formal ceasefire agreement exists between Israel and Lebanon.

The U.S. and Iran are expected to begin negotiations over the weekend to formalise the ceasefire terms. U.S. President Donald Trump said overnight he is optimistic about reaching a deal, while warning Tehran against interfering with shipping in the Strait of Hormuz.

Institutional and foreign investors purchased a net 87.3 billion won (US$59 million) and 393.94 billion won worth of shares, respectively, outweighing retail investors' net selling of 631 billion won.

Most large-cap stocks traded higher.

Market bellwether Samsung Electronics rose 2.21 percent, and its chip rival SK hynix jumped 3.41 percent.

Top carmaker Hyundai Motor gained 0.2 percent, and leading shipbuilder HD Hyundai Heavy Industries rose 1.81 percent.

Among decliners, leading refiner SK Innovation fell 2.18 percent, and leading battery maker LG Energy Solution declined 1.9 percent.

The local currency was trading at 1,480.95 won against the greenback at 11:20 a.m., up 1.55 won from the previous session, according to the report.

- IANS

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Reader Comments

S
Sarah B
Interesting to see foreign and institutional investors buying in Seoul while retail investors sold. A similar pattern often happens in Indian markets too. Retail investors sometimes panic and miss the broader trend driven by geopolitics.
V
Vikram M
While the ceasefire news is positive, we must be cautiously optimistic. The Strait of Hormuz is a vital chokepoint for oil. Any disruption there would send shockwaves through economies like India's, which is heavily dependent on energy imports. The warning from the US President is a reminder that tensions are still high.
P
Priya S
Samsung and SK hynix jumping makes sense. Tech stocks are often the first to rally on global stability news. I wonder if our Indian IT stocks will see a similar bump on Monday? Might be a good time to look at the portfolio.
R
Rohit P
The article mentions "direct talks with Lebanon" but also says no formal ceasefire exists. Seems a bit contradictory, no? Media should be clearer on these details. Peace is a process, not a single headline.
K
Kavya N
As an Indian investor, global events like this remind me how interconnected everything is. A deal between US and Iran could mean cheaper oil, lower inflation pressures for us. Fingers crossed for successful negotiations! 🤞

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