Kospi opens higher on eased Middle East tensions, major chip deals

Stocks opened higher on Monday after the United States paused strikes on Iran over the weekend, easing military tensions in the Middle East.

Opening 1.73 percent higher, the benchmark Kospi narrowed gains and added 45.47 points, or 0.68 percent, to 6,736.09 as of 9:15 a.m.

The United States has held off its attack on Iran since Friday after 13 days of airstrikes, raising hopes of a diplomatic solution to the nearly five-month war.

Oil prices also fell. Brent crude futures dropped 5.7 percent to $91 per barrel, and West Texas Intermediate slipped 5.5 percent to $84. Brent crude, the international standard, briefly topped $100 a barrel last week as the U.S.-Iran conflict spread beyond the Strait of Hormuz to the Red Sea.

Also over the weekend, Korean and U.S. tech companies agreed to pursue a series of cooperation projects worth a combined $950 billion during an AI summit hosted by the Korean government in San Francisco.

The projects include a long-term deal under which SK Group will supply $750 billion worth of high-performance semiconductors to Nvidia and others.

Market bellwether Samsung Electronics rose 1.6 percent, and its chipmaking rival SK hynix increased 0.06 percent.

Top carmaker Hyundai Motor climbed 0.25 percent, but its sister Kia dropped 1.69 percent.

Naver shot up 12.29 percent after announcing Nvidia’s $1 billion investment as part of a partnership to build a new data center.

The won weakened by 0.6 won from the previous session, trading at 1,459.3 won against the dollar as of 9:15 a.m.

Yonhap