Seoul shares soared more than 2 percent on April 15 to close above 6,000 for the first time since the U.S.-Iran conflict erupted in late February. The Korean won strengthened against the U.S. dollar. Hopes for U.S.-Iran peace talks and Wall Street gains drove the rally.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 123.64 points, or 2.07 percent, to close at 6,091.39, after hitting an intraday high of 6,183.21. This marked the first close above 6,000 since the U.S.-Iran conflict broke out in late February.
Trading volume was heavy at 915.03 billion shares worth 31.37 trillion won (US$21.3 billion), with gainers outnumbering losers 570 to 273. Foreigners net purchased 552.19 billion won of stocks, offsetting net selling by institutions (22.37 billion won) and individuals (935.64 billion won).
Risk-on sentiment emerged amid hopes for a second round of U.S.-Iran peace talks after the first round ended without agreement in Islamabad, Pakistan. The U.S. military began a blockade of the Strait of Hormuz on Monday. U.S. President Donald Trump said Iran wants to reach a deal, boosting expectations. Brent crude fell nearly 5 percent to below $95 per barrel on Tuesday, despite Middle East tensions. Wall Street saw the Dow Jones Industrial Average rise 0.66 percent and the Nasdaq composite gain 1.96 percent.
"Major companies' planned release of first-quarter earnings results later this month has reemerged as a positive driver and upside momentum for the market amid deal hopes in the Middle East," said Lee Kyung-min, an analyst at Daishin Securities Co. Tech and auto stocks led gains.
Samsung Electronics rose 2.18 percent to 211,000 won, while SK hynix climbed 2.99 percent to a record high of 1,136,000 won. Hyundai Motor jumped 3.36 percent to 508,000 won, and Kia Corp. gained 1.54 percent to 151,500 won. Decliners included Hanwha Aerospace Industries, down 0.92 percent to 1,509,000 won, and Korea Aerospace Industries, off 1.71 percent to 190,000 won. The won traded at 1,474.20 against the dollar as of 3:30 p.m., up 7 won. Bond yields fell, with the three-year Treasury at 3.328 percent (down 1.1 basis points) and the five-year at 3.516 percent (down 0.3 basis point).
