Seoul: South Korean stocks started sharply higher Wednesday amid hopes for an end to the monthlong war in the Middle East. After opening 5.49 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 246.56 points, or 4.88 percent, to 5.299.02 in the first 15 minutes of trading.
According to Yonhap News Agency, following the surge, the Korea Exchange (KRX), the country's main bourse operator, activated a five-minute buy-side sidecar some seven minutes after the opening bell, temporarily halting program-driven buy orders in KOSPI futures. The increase came as U.S. President Donald Trump said Tuesday (U.S. time) that the United States could end its military operation against Iran within "two or three weeks," saying, "All I have to do is leave Iran."
The conflict, which began in late February following U.S.-Israeli strikes on Iran, has pushed up global oil prices amid supply disruptions, impacting global financial markets and stoking fears of inflation and an economic slowdown. Welcoming the latest developments, the Dow Jones Industrial Average rallied 2.49 percent, while the Nasdaq composite jumped 3.83 percent. The SandP 500 surged 2.91 percent. In Seoul, most big-cap shares opened higher.
Market bellwether Samsung Electronics surged 7.21 percent, while chip giant SK hynix soared 7.19 percent. Top automaker Hyundai Motor rose 5.33 percent, while its sister affiliate Kia advanced 4.2 percent. Leading battery maker LG Energy Solution went up 1.2 percent, and artificial intelligence investment firm SK Square spiked 6 percent.
Bio giant Samsung Biologics climbed 0.47 percent, and Celltrion gained 1.93 percent. Defense giant Hanwha Aerospace added 3.28 percent, and nuclear power plant builder Doosan Enerbility jumped 5.34 percent. Leading financial firm KB Financial grew 4.37 percent, and major steelmaker POSCO rose 2.41 percent. Shipbuilders opened mixed. Leading shipbuilder HD Hyundai Heavy dropped 5.59 percent, while its rival Hanwha Ocean increased 3.24 percent.
The local currency was trading at 1,507.35 won against the greenback at 9:15 a.m., up 22.75 won from the previous session.