Kospi up for 4th day to finish above 8,700 level on U.S.-Iran deal optimism
Stocks rose for a fourth straight session as optimism over a U.S.-Iran agreement to end the conflict and reopen the Strait of Hormuz and lower oil prices lifted foreign buying and tech shares.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 8,726.6 points on June 16, up 180.62 points, or 2.11 percent, from the previous trading session.
NEWS1
Shares shot up by more than 2 percent on Tuesday, extending their winning streak to a fourth day on optimism over a U.S.-Iran deal to end the conflict and reopen the Strait of Hormuz.
The Kospi added 180.62 points, or 2.11 percent, to close at 8,726.6.
Overnight, U.S. stocks rallied after U.S. President Donald Trump said that a preliminary agreement to end the conflict with Iran had already been signed and that the Strait of Hormuz would be "completely opened" on Friday.
The S&P 500 rose 1.7 percent, the tech-heavy Nasdaq 100 gained 3.1 percent and the Dow Jones Industrial Average reached a record high.
Oil prices retreated. Brent crude fell 4.76 percent to $83.17 per barrel, and U.S. WTI dropped 4.87 percent to $80.75 per barrel, easing concerns over inflation.
Trade volume was moderate at 582.36 million shares worth 39.42 trillion won ($26.1 billion), with winners outnumbering losers 518 to 359.
Foreigners and institutions bought a net 1.54 trillion won and 703.53 billion won, respectively, while individual investors sold a net 2.18 trillion won.
"Foreign investors drove gains in the local stock market, as easing geopolitical tensions following the U.S.-Iran deal and falling oil prices strengthened risk appetite," Lee Kyoung-min, an analyst at Daishin Securities, said. "The strong performance of U.S. tech stocks also supported sentiment in Korea's semiconductor sector."
Tech shares posted gains across the board.
Samsung Electronics increased 1.78 percent to 343,000 won, and SK hynix gained 4.11 percent to 1.38 million won. SK Square surged 6.23 percent to 1.5 million won.
Defense stocks also traded higher. Hanwha Aerospace advanced 9.13 percent to 1.183 million won, while LIG D&A jumped 18.85 percent to 1.002 million won after announcing a partnership with German defense firm Rheinmetall to cooperate in air defense systems.
Daewoo Engineering & Construction soared 19.87 percent to 27,450 won due to expectations of new business opportunities in the Middle East amid eased geopolitical tensions.
The won weakened by 0.5 won from the previous session, trading at 1,511.6 won against the dollar at 3:30 p.m.
Yonhap
