Kospi surges 4.63% on renewed hopes for end to Iran war
Seoul stocks soared 4.63 percent as foreign investors returned to tech shares amid growing expectations the United States and Iran could soon reach a settlement.
PublishedModified
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 8,123.62 points on June 12, up 4.63 percent from the previous trading session.NEWS1
Seoul stocks rose by more than 4 percent Friday, as investors snapped up tech heavyweights amid hopes the war between the United States and Iran could end soon.
The benchmark Kospi closed up 359.67 points, or 4.63 percent, at 8,123.62 after rising as high as 8,434.40.
After opening sharply higher on renewed hopes that the war between the United States and Iran is near its end, the index trimmed earlier gains on profit-taking ahead of the closing bell.
Trade volume was heavy at 490.3 million shares worth 51.1 trillion won ($33.6 billion). Winners outnumbered losers 753 to 144.
On Thursday, U.S. President Donald Trump said he has reached a "great settlement" that would resolve the monthslong conflict with Iran and the deal would be signed as early as over the weekend, possibly in Europe.
Media outlet Axios also reported that four U.S. Air Force C-17 planes departed for Europe on Thursday, moving equipment for possible travel by Vice President JD Vance, raising the possibility a signing ceremony could take place in Geneva.
"Market sentiment improved as foreign investors shifted to net buying after a 25-session selling streak, on anticipations for peace negotiations," said Lee Kyoung-min, an analyst from Daishin Securities.
United States Central Command's Brad Cooper speaks during a press conference at Centcom headquarters at MacDill Air Force Base in Tampa, Florida, on March 5.EPA/YONHAP
But the rise was limited, amid reports that global banks are curbing hedge funds' leveraged bets on the country's two semiconductor heavyweights: Samsung Electronics and SK hynix, Lee added.
Foreigners and institutional investors net purchased a combined 4.4 trillion won. Retail investors net sold 4.3 trillion won.
In Seoul, shares closed higher across the board.
Market top-cap Samsung Electronics rose 7.86 percent to 322,500 won, while chipmaking rival SK hynix moved up 2.33 percent to 2,150,000 won.
Semiconductor equipment maker Hanmi Semiconductor vaulted 24.05 percent to 361,000 won, after the company said in a regulatory filing it is seeking to invest in SpaceX, Elon Musk's space company set to make its Nasdaq debut on Friday.
Shipmakers also gathered ground as investors went bargain hunting. Hanwha Ocean added 7.85 percent to 112,700 won and HD Hyundai Heavy Industries increased 0.62 percent to 650,000 won.
Portal operator Naver jumped 10.27 percent to 247,000 won, financial firm KB Financial climbed 6.4 percent to 161,200 won, and top car maker Hyundai Motor added 1.68 percent to 607,000 won.
The local currency strengthened by 9.1 won from the previous session, trading at 1,519.8 won against the dollar as of 3:30 p.m.
