Seoul: South Korean stocks opened higher Friday, rebounding from sharp losses the previous session, as investors had guarded hopes for the reopening of the Strait of Hormuz amid a prolonged conflict in the Middle East. After opening 2.7 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 172.7 points, or 3.3 percent, to 5,406.75 in the first 15 minutes of trading.
According to Yonhap News Agency, during a prime-time address on Wednesday (U.S. time), U.S. President Donald Trump said the United States would hit Iran "extremely hard over the next two to three weeks" and "bring them back to the Stone Age," without providing a timeline for ending the conflict. The warning of intensifying military operations dampened hopes for a swift resolution to the monthlong conflict, which has pushed up oil prices amid supply disruptions, rattled financial markets, and fueled fears of inflation and a potential economic slowdown.
Iran's Deputy Foreign Minister Kazem Gharibabadi, however, said Tehran is drafting a protocol with Oman to monitor traffic through the Strait of Hormuz, which would require ships to obtain permits and licenses, according to foreign media reports. The move raised hopes for progress in reopening the strategic waterway, which has effectively been shut since the start of the war in late February, and helped ease global oil prices.
Overnight, the Dow Jones Industrial Average fell 0.13 percent, while the Nasdaq composite rose 0.18 percent. The S and P 500 gained 0.11 percent. In Seoul, most big-cap shares opened higher.
Market bellwether Samsung Electronics surged 4.71 percent, while chip giant SK hynix soared 6.51 percent. Top automaker Hyundai Motor jumped 3.22 percent, while its affiliate Kia advanced 2.92 percent. Leading battery maker LG Energy Solution grew 0.74 percent, and artificial intelligence investment firm SK Square climbed 3.41 percent.
Bio giant Samsung Biologics rose 0.5 percent, while Celltrion gained 0.92 percent. Defense giant Hanwha Aerospace went up 0.42 percent, and nuclear power plant builder Doosan Enerbility increased 3.21 percent. Leading financial firm KB Financial increased 0.82 percent. Shipbuilders gathered ground, with local industry leader HD Hyundai Heavy rising 4.56 percent and its rival Hanwha Ocean increasing 2.51 percent.
The local currency was trading at 1,510.8 won against the greenback at 9:15 a.m., up 8.9 won from the previous session.