Kospi surges 4% on U.S.-Iran cease-fire deal

Korea's stock market surged Monday on news of a U.S.-Iran cease-fire, with the Kospi jumping over 4 percent at the open and briefly triggering a halt on program buy orders.

The benchmark index was up 352.86 points, or 4.34 percent, to 8,476.48 as of 9:02 a.m., after opening up 402.50 points, or 4.95 percent, at 8,526.12, according to the Korea Exchange.

The buy-side sidecar was activated at around 9:06 a.m., putting a five-minute suspension on buy orders on the main bourse. A sidecar halts program trading when certain market indexes fluctuate beyond a designated threshold.

Korea's tech-heavy secondary index Kosdaq opened up 19.14 points, or 1.86 percent, at 1,048.19 and was trading up 15.03 points, or 1.46 percent, at 1,044.08 at the same time.

U.S. President Donald Trump said Sunday that a peace deal with Iran is complete and ordered the immediate lifting of a U.S. naval blockade of Iranian ports, a move that could reopen one of the world's most critical oil shipping routes.

"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!" Trump said in a post on Truth Social. 

The deal is understood to be a memorandum of understanding rather than a comprehensive agreement, and one that would reopen the Strait of Hormuz and set the stage for 60-day technical talks on Iran's nuclear program. The broader shape of any permanent settlement remains unclear.

BY LEE JIAN [[email protected]]