Seoul: South Korean stocks traded sharply higher late Thursday morning as Samsung Electronics averted a strike and other market heavyweights advanced on hopes for a possible agreement between the United States and Iran to end the war in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) gained 6.83 percent to 7,701.13 as of 11:20 a.m.

According to Yonhap News Agency, as stocks extended gains, buy-side orders in KOSPI futures were suspended for five minutes at around 9:23 a.m. This suspension followed overnight advances in U.S. stocks, which rose as crude oil prices declined. The decline in oil prices came after reports that U.S. President Donald Trump stated that Washington was in the "final stages" of talks with Iran.

In Seoul, large-cap shares were trading higher. Market bellwether Samsung Electronics gained 5.89 percent after reaching a tentative deal with its labor union to avert a strike. Its chipmaking rival SK hynix jumped 9.91 percent. Meanwhile, artificial intelligence investment firm SK Square surged 10.01 percent.

Auto shares also traded higher. Top automaker Hyundai Motor surged 8.95 percent, and its sister company Kia rose 10.84 percent. Auto-parts affiliate Hyundai Mobis saw an impressive increase, skyrocketing 18.69 percent.

The Korean won was trading at 1,502.7 won against the U.S. dollar at 11:20 a.m., up 4.1 won from the previous session.