Seoul: Seoul stocks were trading higher late Tuesday morning, as investor sentiment was lifted following a U.S.-Iran agreement to reopen the Strait of Hormuz. The benchmark Korea Composite Stock Price Index (KOSPI) was up 145.52 points, or 1.7 percent, to 8,691.5 as of 11:20 a.m.
According to Yonhap News Agency, overnight, U.S. stocks rallied after U.S. President Donald Trump announced that a preliminary agreement to end the conflict with Iran had been signed, ensuring the Strait of Hormuz would be "completely opened" by Friday. This news positively impacted global markets, including Seoul.
The U.S. stock market saw significant gains, with the S and P 500 rising 1.7 percent, the tech-heavy Nasdaq 100 increasing by 3.1 percent, and the Dow Jones Industrial Average reaching a record high. Consequently, oil prices declined, with Brent crude falling 4.76 percent to US$83.17 per barrel and U.S. WTI dropping 4.87 percent to $80.75 per barrel, which eased inflation concerns.
In the Korean market, top-cap Samsung Electronics edged up 0.89 percent, while its industry rival SK hynix rose 2.91 percent. Defense firm LIG D and A saw a substantial jump of 18.82 percent after announcing a partnership with German defense firm Rheinmetall to cooperate in air defense systems. Additionally, Daewoo Engineering and Construction surged 22.71 percent, driven by expectations of new business opportunities in the Middle East amid the easing geopolitical tensions.
The Korean won was quoted at 1,513.9 won against the U.S. dollar, down 2.8 won from the previous session.