Home > Business > Finance

Kospi opens over 5 percent higher after 2-week cease-fire declared in Iran

Published: 08 Apr. 2026, 09:57 Updated: 08 Apr. 2026, 11:55

MICHAEL LEE
[email protected]

The dealing room of Hana Bank's main branch in Jung District, central Seoul, on April 8. [YONHAP]

Korean stocks surged at the open on Wednesday, triggering a buy-side “sidecar” or a temporary five-minute halt on program trading designed to curb excessive volatility.

The benchmark Kospi rose 309.92 points, or 5.64 percent, to 5,804.7 at the opening bell, extending gains driven by both geopolitical relief at the news of a two-week cease-fire in Iran and strong corporate earnings.

The rally followed remarks by U.S. President Donald Trump, who said in a social media post that Washington would suspend attacks on Iran for two weeks if Tehran agreed to the “complete, immediate and safe opening” of the strait.

Iran’s foreign ministry later confirmed it had accepted the two-week cease-fire proposal, signaling a potential de-escalation after days of mounting tensions. Trump said the United States had also received a 10-point proposal from Iran that he described as a “workable basis” for negotiations.

The prospect of a temporary cease-fire and the reopening of one of the world’s most critical energy chokepoints buoyed investor sentiment in Korea. Seventy percent of the country’s oil imports pass through the strait.

Gains were broad-based, with major blue chip stocks — including Samsung Electronics, SK hynix and Hyundai Motor — all opening sharply higher.

A screen displays global oil price benchmarks at Hana Bank's main branch in Jung District, central Seoul, on April 8. [NEWS1]

Momentum was also fueled by Samsung Electronics’ record first-quarter earnings, reported at 57 trillion won ($42 billion), which continued to lift semiconductor stocks.

Samsung Electronics rose more than 6 percent in early trading, climbing past 210,000 won, while SK hynix surged about 9 percent to reclaim the 1 million won mark.

An SK hynix official told local media there was no specific catalyst behind the surge, adding that there were no new developments to disclose. Analysts said optimism following Samsung’s record results appeared to have spilled over to its chipmaking rival, which is expected to release its own earnings later this month.

Other large-cap stocks, including Doosan Enerbility and Samsung SDI, also opened higher.

Not all stocks joined the rally. Samchundang Pharm extended its decline, falling more than 10 percent in early trading to around 460,000 won amid ongoing controversy over its diabetes and obesity drug technology known as S-PASS.

The local currency strengthened by 24.3 won to trade at 1,479.9 won against the greenback at the opening of the foreign exchange market.

BY MICHAEL LEE, YONHAP [[email protected]]