Seoul: South Korean stocks climbed 6 percent to surpass the 7,300-point threshold on Wednesday, driven by significant gains in semiconductor shares and growing optimism for a peace deal between the United States and Iran. Opening 2.25 percent higher, the Korea Composite Stock Price Index (KOSPI) continued its upward trajectory, adding 418.82 points, or 6.04 percent, to reach an all-time intraday high of 7,355.81 by 11:20 a.m.

According to Yonhap News Agency, the bourse operator initiated a buy-side sidecar at 9:06 a.m. to temporarily halt program-driven buy orders in KOSPI futures for five minutes following the surge. The stock market's strong performance was buoyed by U.S. President Donald Trump's announcement to pause U.S. efforts to guide ships through the Strait of Hormuz in order to finalize a deal with Iran.

Overnight gains in U.S. markets also contributed to the positive sentiment, with the S and P 500 and Nasdaq closing at record highs driven by artificial intelligence-related stocks. In Seoul, semiconductor stocks spearheaded the rally, with top-cap Samsung Electronics soaring 12.47 percent and chipmaking rival SK hynix rising 10.3 percent. Hanmi Semiconductor, a chip equipment manufacturer, saw a 1.59 percent increase.

Meanwhile, top carmaker Hyundai Motor advanced 2.23 percent, and its auto parts affiliate Hyundai Mobis added 0.46 percent. However, defense shares faced declines, with industry leader Hanwha Aerospace down 2.32 percent and Hyundai Rotem falling 2.6 percent. The Korean won was trading at 1,457.6 won against the U.S. dollar at 11:20 a.m., marking an increase of 5.2 won from the previous session.