South Korean stocks opened sharply higher after Iran pledged safe passage through the Strait of Hormuz during a two-week ceasefire. The KOSPI benchmark rose 5.64% to 5,804.7 at the open, reaching 6.03% higher at 5,825.91 by 9:20 a.m. U.S. President Donald Trump's social media post and Iran's foreign ministry statement drove the surge.
The Korea Exchange (KRX) activated a buy-side sidecar, temporarily halting program-driven buy orders in KOSPI futures amid the surge.
U.S. President Donald Trump posted on social media that the U.S. would suspend attacks on Iran for two weeks if Tehran agrees to the "complete, immediate and safe opening" of the Strait of Hormuz. Trump described a 10-point proposal from Iran as a "workable basis on which to negotiate." Iran's foreign ministry issued a statement accepting the two-week ceasefire proposal.
Trump had previously urged Iran to open the waterway by 8:00 p.m. Tuesday (U.S. time), warning of strikes on Iran's power plants and bridges otherwise.
Samsung Electronics rose 7.12%, SK hynix jumped 9.72%. KB Financial advanced 7.77%, Samsung Life Insurance added 6.98%. Hyundai Motor gained 4.65%, Kia 4.64%. Battery makers were mixed: LG Energy Solution fell 0.24%, Samsung SDI rose 1.97%. The won traded at 1,477.2 against the dollar at 9:20 a.m., up 27 won from the prior session.
