Seoul: South Korean stocks shot up nearly 6.5 percent Wednesday, extending a record-breaking run to top the 7,300-point mark, driven by a semiconductor rally and optimism for a potential peace deal in the Middle East. The local currency also strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) added 447.57 points, or 6.45 percent, to a fresh record high of 7,384.56.

According to Yonhap News Agency, overnight, U.S. President Donald Trump announced a pause in operations to escort ships through the Strait of Hormuz, as part of efforts to reach a final agreement with Iran. This announcement contributed to the positive sentiment in the market. The KOSPI opened 2.25 percent higher, surpassing the landmark 7,000-point threshold for the first time, and extended the gains throughout the session.

The main index has been on a bullish run in recent months, surpassing the 5,000-point mark in late January and topping another milestone of 6,000 points in February. After recovering its losses in March following the outbreak of the U.S.-Iran war in late February, the KOSPI breached the 7,000-point level on continued optimism over the artificial intelligence boom and hopes for the reopening of the key waterway.

Samsung Electronics played a significant role in the market rally, surging 14.41 percent to close at 266,000 won (US$182.83). This surge pushed its market capitalization above 1.5 quadrillion won, making it the second Asian company to surpass this milestone after Taiwan Semiconductor Manufacturing Co.