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Seoul Stocks Trim Gains Despite Easing US-Iran Tensions

Seoul stocks trimmed significant early gains despite easing military tensions between the United States and Iran, with the KOSPI rising 0.83% after an initial surge over 4%. The market adjustment came as foreign investors applied selling pressure, even after U.S. President Donald Trump postponed planned strikes on Iranian energy facilities. Meanwhile, South Korea's exports surged by more than 50% year-on-year, primarily driven by a record semiconductor performance. The South Korean won also rebounded sharply against the dollar, recovering from a 17-year low hit in the previous session.

Key Points: Seoul Stocks Trim Gains as Mideast Tensions Ease

  • KOSPI pares sharp opening gains
  • Trump postpones strikes on Iran
  • South Korean exports surge over 50%
  • Won rebounds from 17-year low
  • Chipmakers and autos trade mixed
2 min read

Seoul stocks trim earlier gains despite easing Mideast tensions

KOSPI pares early surge despite Trump delaying Iran strikes. Won strengthens from 17-year low. Exports surge over 50% led by chips.

"constructive discussions on ending the war in the Middle East - U.S. President Donald Trump"

Seoul, March 24

Seoul stocks trimmed earlier gains late on Tuesday morning, despite easing military tensions between the United States and Iran.

The benchmark Korea Composite Stock Price Index (KOSPI) inched up 45.02 points, or 0.83 percent, to 5,450.77, as of 11:20 a.m.

The index reduced its gains following a sharp rebound of over 4 percent in the opening bell, as the broader market came under selling pressure from foreign investors, reports Yonhap news agency.

Overnight, major U.S. stock indexes closed up, after U.S. President Donald Trump said he plans to postpone attacks on Iranian energy facilities after talks with Iran.

Trump had earlier threatened to hit Iran's power plants if Tehran does not open the Strait of Hormuz, a key global oil waterway, by Monday evening. Iran, in response, warned it could retaliate.

The latest development fuelled hopes that tensions in the Middle East could ease and soaring oil prices could stabilise.

Meanwhile, South Korea's tariff agency announced that the country's exports as of Friday rose by more than 50 percent on-year, primarily led by semiconductors, which posted a new monthly record.

Large-cap shares were trading mixed.

The country's two chipmakers lost some of its gains, with Samsung Electronics up 1.18 percent and SK hynix adding 2.47 percent.

Top carmaker Hyundai Motor rose 1.24 percent, and defense giant Hanwha Aerospace advanced 1.72 percent, while major financial group KB Financial remained unchanged.

The South Korean won gained sharply against the US dollar, recovering from a 17-year low in the previous session, after U.S. President Donald Trump delayed planned strikes on Iranian energy infrastructure amid talks to end the conflict.

The won opened at 1,490.9 per dollar, up 26.4 won from the previous session's 1,517.3 won. Monday's level marked the weakest since March 9, 2009, when the won fell to 1,549 during the global financial crisis.

The domestic and global foreign exchange and stock markets have experienced heightened volatility as U.S.-Israeli strikes on Iran that began late last month have escalated into a broader regional conflict.

On Monday (U.S. time), Trump said he ordered a five-day postponement of threatened strikes on Iranian energy facilities, citing "constructive" discussions on ending the war in the Middle East.

- IANS

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Reader Comments

P
Priya S
The semiconductor export numbers from South Korea are impressive! It shows the global demand is still strong. Our own IT and manufacturing sectors should take note. Geopolitical issues cause short-term blips, but solid fundamentals in key industries always win in the long run. 💪
R
Rohit P
Markets trimming gains despite good news is classic "buy the rumor, sell the news" behavior. Foreign investors pulling out is a sign of continued caution. As an Indian investor, I see similar patterns here when there's global uncertainty. Better to be safe than sorry.
S
Sarah B
While it's good that tensions are easing, the article highlights how much power a single statement from a US President holds over global markets. It feels a bit unstable, doesn't it? Wish there was more focus on multilateral diplomacy for long-term stability.
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Vikram M
The Strait of Hormuz is a lifeline for global oil. Any threat to it sends shockwaves everywhere. India imports a massive amount of oil, so stability there is directly linked to our petrol prices and inflation. Hope the postponement turns into a permanent solution.
K
Karthik V
Respectfully, the article could have drawn a clearer parallel for Indian readers. How does the won's recovery or Korean chip exports affect the INR or our Sensex/Nifty? The global context is given, but the local relevance for us is a bit missing. Just a thought.

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