South Korean stocks opened sharply higher on Wednesday amid hopes for an end to the monthlong Middle East war. The KOSPI benchmark surged 5.49% to 5,330.04 at open, reaching 5,299.02, up 4.88%, after 15 minutes. U.S. President Donald Trump's comments on ending the Iran operation fueled the rally.
The Korea Exchange (KRX) activated a five-minute buy-side sidecar about seven minutes after the opening bell, temporarily halting program-driven buy orders in KOSPI futures following the surge.
The rally followed U.S. President Donald Trump's statement on Tuesday (U.S. time) that the United States could end its military operation against Iran within "two or three weeks," adding, "All I have to do is leave Iran." The conflict began in late February after U.S.-Israeli strikes on Iran, driving up global oil prices amid supply disruptions and stoking fears of inflation and economic slowdown.
U.S. markets welcomed the news, with the Dow Jones Industrial Average up 2.49%, Nasdaq composite jumping 3.83%, and S&P 500 surging 2.91%. In Seoul, bellwethers like Samsung Electronics soared 7.21%, SK hynix 7.19%, and Hyundai Motor 5.33%, though shipbuilder HD Hyundai Heavy dropped 5.59%.
The local currency traded at 1,507.35 won against the U.S. dollar at 9:15 a.m., up 22.75 won from the previous session.
