South Korean stocks opened sharply higher Tuesday amid revived hopes for US-Iran peace talks after a US naval blockade of the Strait of Hormuz. The benchmark KOSPI surged 2.61% to 5,960 at open, while the won strengthened to 1,478.8 per dollar, up 10.5 won.
The benchmark Korea Composite Stock Price Index (KOSPI) opened at 5,960, up 151.38 points or 2.61%, at the Seoul stock exchange on Tuesday. It added 146.28 points or 2.52% to 5,954.9 in the first 15 minutes of trading, tracking overnight Wall Street gains. The Dow Jones Industrial Average rose 0.63%, and the Nasdaq Composite gained 1.23%.
U.S. President Donald Trump stated that "the right people" in Iran had reached out to his administration wanting "to work a deal," as the U.S. Navy began a naval blockade of the Strait of Hormuz on Monday. Talks between the U.S. and Iran in Islamabad over the weekend, following a two-week ceasefire agreement, ended without agreement on terms. Iranian President Masoud Pezeshkian said the country is prepared to continue talks within the framework of international law, according to media reports. Signs of resumed talks pushed global oil prices below $100.
Most shares advanced. Samsung Electronics rose 2.74%, SK hynix gained 5%, Hyundai Motor advanced 2.87%, and affiliate Hyundai Mobis increased 3.32%. KB Financial Group added 0.57%, and Celltrion climbed 2.97%. Defense stocks bucked the trend, with Hanwha Aerospace down 0.98% and LIG D&A, formerly LIG Nex1, dropping 0.43%.
The won traded at 1,479.25 against the dollar at 9:15 a.m., up 10.05 won from the prior close, having opened at 1,478.8, up 10.5 won. The currency has been volatile amid the Middle East conflict that began late February, with higher oil prices boosting dollar demand for imports. The dollar index fell 0.03% to 98.34.
