Seoul stocks up nearly 8 pc on hopes for end of Iran war
Seoul, June 12
Seoul stocks were trading sharply higher on Friday morning as US President Donald Trump fuelled hopes for an end to the Iran war.
The benchmark Korea Composite Stock Price Index (KOSPI) was trading up 606.46 points, or 7.81 percent, to 8,370.41, as of 11:20 am, reports Yonhap news agency.
After opening sharply higher, the index is remaining above the 8,000-point mark, as institutional and foreign investors snapped up blue chip tech stocks.
On Thursday (U.S. time) President Trump said Washington reached "a great settlement" on the war with Iran, and a deal would be signed as early as this weekend. Iran, however, has yet to confirm such a deal.
The Bank of Korea, meanwhile, reaffirmed its hawkish stance on rates, with Gov. Shin Hyun-song saying the bank should "raise interest rates without delay," in a message marking the bank's 76th anniversary.
Most market heavy weights were in positive territory, tracking overnight gains on Wall Street.
Chip giant Samsung Electronics climbed 11.37 percent, while its rival SK hynix added 8 percent.
Top car maker Hyundai Motor advanced 5.53 percent, electronics maker LG Electronics moved up 6.19 percent, and leading financial company KB Financial jumped 8.05 percent.
The Korean won was quoted at 1,519.9 won against the U.S. dollar, up 9 won from the previous session.
South Korea and other countries have been closely watching developments in the Middle East conflict, which has all but closed the Strait of Hormuz, a key shipping route for oil, fertiliser and other commodities, and has pushed up oil prices.
"We have a signing soon and the documents are in pretty final shape. So, we'll see. Very good ... should be done pretty quickly," Trump said.
The president added, "The Strait (of Hormuz) will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe."
Referring to the envisioned peace document, Trump said that the "most important paragraph" to him is that "Iran will, in no way, shape or form, have a nuclear weapon or purchase a nuclear weapon."
— IANS
Reader Comments
As someone who follows the stock market, this rally is impressive but feels a bit too reliant on one man's statement. Hope for peace is great, but we need stability, not just short-term bumps. India should have its own energy security plans regardless.
Korea's markets jumping 8% shows how interconnected the world is. India's Nifty could also benefit if this peace holds. But I'm skeptical—Iran hasn't confirmed anything yet. Hope Trump isn't jumping the gun again. 🤔
While this is positive for global trade, I'm more concerned about India's domestic inflation. If oil prices drop, it'll help our economy, but let's not forget that South Korea is also raising interest rates—same thing RBI might have to do. Hot money flows are tricky.
Trump says a deal is ready, but we all know how these things go. Remember the Afghanistan withdrawal chaos? I hope for real peace in the Middle East, but India must be prepared for any scenario. Our strategic reserves of oil are still not enough.
Great to see markets reacting positively! But I wonder how this affects Indian IT companies that have exposure to Middle East clients. Also, if oil prices fall, our CAD deficit could improve. Let's hope this is genuine peace and not just election posturing. 🙏
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