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Seoul Stocks Surge 2.27% on Tech Rally, Middle East Peace Hopes

South Korean stocks traded sharply higher, with the KOSPI index gaining over 2% driven by strong buying from institutional and foreign investors. The rally was fueled by investor hopes for progress in US-Iran negotiations to end the ongoing Middle East conflict, despite Tehran denying contact. Major large-cap shares like Samsung Electronics, SK hynix, and Hyundai Motor posted significant gains, though some battery and shipbuilding stocks declined. Concurrently, South Korea and Canada held talks to address global supply chain issues and a potential submarine project.

Key Points: Seoul Stocks Jump on Tech Gains, US-Iran Talks

  • KOSPI rose 2.27%
  • Tech and auto shares led gains
  • US-Iran negotiation hopes fueled rally
  • Institutional and foreign investors were strong buyers
2 min read

Seoul stocks up amid talks to end war in Middle East

South Korea's KOSPI rose sharply as tech shares rallied and investors reacted to potential progress in US-Iran negotiations to end the Middle East conflict.

"Iran has offered the U.S. a 'very significant prize' related to oil and gas - Donald Trump"

Seoul, March 25

South Korean stocks traded markedly higher late on Wednesday morning, driven by gains in big-cap tech shares, as investors cautiously pinned hopes for progress in negotiations between the United States and Iran to end the ongoing conflict.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 126.14 points, or 2.27 percent, to 5,680.06 as of 11:20 a.m.

The index opened sharply higher and maintained its upward momentum on strong buying by institutional and foreign investors, reports Yonhap news agency.

US President Donald Trump said that Iran has offered the U.S. a "very significant prize" related to oil and gas, adding that negotiations are under way to end the monthlong war in the Middle East.

But Tehran denied claims that it has been in contact with the U.S., according to foreign media reports.

Most large-cap shares gathered ground.

Market bellwether Samsung Electronics rose 2.06 percent, while chip giant SK hynix surged 3.85 percent.

Top automaker Hyundai Motor advanced 2.24 percent, and its sister affiliate Kia climbed 1.52 percent.

Pharmaceutical giant Samsung Biologics went up 1.87 percent, and defense giant Hanwha Aerospace jumped 2.02 percent.

Nuclear power plant builder Doosan Enerbility soared 3 percent, and leading financial group KB Financial added 2.25 percent.

Samsung Life Insurance increased 2.25 percent, and Mirae Asset Securities spiked 5.24 percent.

But leading battery maker LG Energy Solution fell 0.64 percent, while major shipbuilder HD Hyundai Heavy shed 0.58 percent.

The Korean won was trading at 1,494.4 won against the U.S. dollar as of 11:20 a.m., up 0.8 won from the previous session.

Meanwhile, South Korea and Canada on Wednesday discussed joint efforts to address global supply chain disruptions and other shared issues, including Seoul's bid for a multibillion-dollar Canadian patrol submarine project, officials said.

The discussions took place during their "two plus two" working-level talks between foreign and industry officials as the two countries step up efforts to strengthen their partnership amid growing supply chain bottlenecks and other geopolitical challenges.

- IANS

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Reader Comments

P
Priya S
Good news for global stability! Any reduction in conflict, especially in the Middle East, is positive for oil prices and inflation worldwide. This directly impacts our petrol and diesel costs here in India. Fingers crossed the negotiations are successful.
R
Rohit P
Samsung and SK Hynix up sharply! Shows how interconnected tech supply chains are. A stable Middle East means smoother shipping routes and less disruption for electronics manufacturing. Hopefully, this boosts sentiment for our IT and pharma stocks too.
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Michael C
The article mentions Tehran denying contact with the US. This conflicting information is a bit worrying. Markets hate uncertainty. It's a classic case of "buy the rumour, sell the news." Investors should be cautious until there's official confirmation.
S
Shreya B
Peace talks are always welcome. But as an Indian, my first thought is about the impact on our diaspora and oil imports. So many Indian workers are in the Gulf region. Their safety and the stability of our energy supply are paramount. 🙏
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Karthik V
The part about South Korea and Canada discussing supply chains is key for us too. Global partnerships to secure critical materials are the need of the hour. India should actively pursue similar alliances to reduce dependency on any single region.

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