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Kospi closes up 1.6% on optimism for end of Iran war

Published: 25 Mar. 2026, 17:49

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 5,642.21 points on March 25, up 88.29 points, or 1.59 percent, from the previous trading session. [NEWS1]

Shares closed more than 1 percent higher on Wednesday on growing optimism that the U.S.-Iran war could end soon. The won fell against the dollar.

The Kospi advanced 88.29 points, or 1.59 percent, to 5,642.21, after hitting an intraday high of 5,740.97.

Trade volume was moderate at 756.4 million shares worth 24.4 trillion won ($16.3 billion). Winners outnumbered losers 716 to 165.

Institutional investors were net buyers, purchasing a net 2.3 trillion won. Retail and foreign investors sold off a combined net 2.6 trillion won of equities.

On Tuesday, U.S. President Donald Trump claimed he had productive talks with Iran on ending the monthlong war, adding that Iran has offered a "significant prize," related to gas and oil.

Tehran, however, denied claims of having contact with Washington, according to foreign media, which appeared to affect Korea's main bourse.

"Lingering uncertainties over the Middle East situation limited the rise in the local stock market," Lee Kyoung-min, an analyst from Daishin Securities, said.

In Seoul, most large-cap shares were trading higher.

Market top-cap Samsung Electronics inched down 0.37 percent to 189,000 won, while chipmaking rival SK hynix rose 0.91 percent to 995,000 won.

Defense shares were strong, with Hanwha Aerospace adding 4.87 percent to 1,400,000 won and Hyundai Rotem climbing 7.2 percent to 190,700 won. LIG Nex1 jumped 14.51 percent to 734,000 won on news that the company joined hands with U.S. data company Palantir to jointly develop defense systems.

Local brokerage Mirae Asset Securities shot up 10.15 percent to 67,300 won on reports that SpaceX is aiming to file for a stock listing as soon as this week. The firm is among the investors of the space company founded by Tesla's Elon Musk.

The won weakened by 4.5 won from the previous session to trade at 1,499.7 won against the dollar, as of 3:30 p.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 3.5 basis points to 3.56 percent, and the return on the benchmark five-year government bonds rose 3.1 basis points to 3.79 percent.

Yonhap