Seoul: South Korean stocks rose nearly 1 percent on Tuesday, driven by gains in technology shares as investors looked forward to a potential resumption of U.S.-Iran talks in Qatar aimed at alleviating tensions in the Strait of Hormuz. The Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 81.83 points, or 0.97 percent, closing at 8,476.47. Investor sentiment saw an improvement following news of the United States and Iran intending to restart discussions in Qatar, potentially easing concerns over prolonged disruptions to global oil supplies.
The positive momentum was further supported by a sharp rebound on Wall Street, where tech stocks drove gains. The Dow Jones Industrial Average rose 0.59 percent to a record high, while the Nasdaq composite surged 2.07 percent, and the S and P 500 climbed 1.18 percent. Crude oil prices saw a modest rise as investors kept an eye on the implementation of the U.S.-Iran peace framework.
Trade volume on the KOSPI was moderate, with 444.61 million shares valued at 41.08 trillion won (US$26.51 billion) changing hands. The number of losers outpaced gainers, with 621 stocks losing ground compared to 261 gainers. Institutional and individual investors were net buyers, purchasing shares worth 2.93 trillion won and 833.45 billion won respectively, whereas foreign investors sold a net 3.79 trillion won.
Lee Kyoung-min, an analyst at Daishin Securities, noted, "Investors scooped up semiconductor shares following recent losses, while IT infrastructure and electricity stocks rose on hopes for major investment in semiconductor infrastructure in the southwestern region announced by the government and chipmakers." This sentiment pushed tech shares higher, lifting the overall market.
Samsung Electronics, the market bellwether, climbed 3.41 percent to 334,000 won, and chip giant SK hynix increased 0.84 percent to 1.65 million won. SK Square, the parent company of SK hynix, also saw a rise of 3.48 percent to 1.69 million won. Samsung Electro-Mechanics, a chip components maker, saw a notable jump of 7.16 percent to 1.18 million won after securing a 454 billion-won supply deal for multilayer ceramic capacitors (MLCCs) for artificial intelligence servers with a U.S.-based customer.
However, battery shares faced a decline due to profit-taking following substantial gains in the previous session. LG Energy Solution dropped 9.61 percent to 362,000 won, and its smaller competitor Samsung SDI fell 4.88 percent to 487,000 won.
As of 3:30 p.m., the Korean won was quoted at 1,549.4 won per U.S. dollar, down 4.2 won from the previous session.