Seoul: South Korean stocks closed at a new historic high Tuesday, fully erasing their losses since the outbreak of the U.S.-Iran conflict, as investors expect progress in the two countries' peace talks and tech heavyweights gained traction. The Korean won rose against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 169.38 points, or 2.72 percent, at a new record high of 6,388.47. The index erased most of the losses seen since the onset of the war between the United States and Iran in late February, surpassing the previous high of 6,307.27 points on February 26.

"The KOSPI's advance is in part due to the unwavering corporate earnings momentum," said Lee Kyoung-min, an analyst from Daishin Securities. Lee noted that the local market is experiencing a rerating on the backdrop of a growing appetite for risky assets, especially from offshore investors who have been snapping up heavyweight equities.

The U.S. and Iran are still sparring over a second round of peace talks as the deadline for their two-week ceasefire is set to expire. U.S. President Donald Trump stated that the deadline will not likely be extended, and expectations run high that Iran may come to the table for negotiations.