Seoul: Seoul stocks closed sharply higher Monday to extend their winning streak to a third day, landing above the 8,500-point mark on the back of an agreement between the United States and Iran to end their monthslong war. The Korean won rose sharply.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed up 422.36 points, or 5.2 percent, to 8,545.98, after rising as high as 8,603.48. "The KOSPI broke the 8,500-point mark as the breakthrough in peace talks opened a risk-on rally," said Lee Kyoung-min, an analyst from Daishin Securities.

He said foreign investors were net buyers, adding upward pressure to the stock market, along with institutional investors. The country's main bourse operator issued a sidecar shortly after the market opened, marking the 14th time for the Korea Exchange to issue such a measure.

On Sunday (local time), U.S. President Donald Trump announced an agreement with Iran to end their conflict, including authorizing the toll-free opening and the removal of the naval blockade in the Strait of Hormuz. An official signing ceremony of the agreement is scheduled to take place in Switzerland on Friday.