Seoul:South Korean stocks soared over 4 percent on Tuesday, breaking a three-day losing streak. The rally was driven by significant gains in technology shares amid sharply falling oil prices, fueled by hopes for a possible end to the conflict in the Middle East.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) closed up 220.28 points, or 4.39 percent, at 5,239.13, after reaching a high of 5,300.92. The Korea Exchange activated a buy-side sidecar early in the trading session, temporarily suspending program trading for KOSPI-listed shares for five minutes due to the sharp rise.
The trading volume was moderate, with 241 million shares valued at 16.2 trillion won (about US$12.1 billion) changing hands. The market saw 714 gainers against 174 decliners. Foreign investors turned net buyers, purchasing a net 365.9 billion won in shares, and institutional investors bought a net 489 billion won. Conversely, individual investors sold a net 1.3 trillion won.
U.S. President Donald Trump's comments about not being prepared to resume military actions against Iran contributed to the decrease in crude oil prices, which supported gains in stock markets. On Wall Street, technology stocks led gains, and the PHLX semiconductor index rose 6.85 percent.
Market leaders in South Korea, such as Samsung Electronics and SK hynix, experienced significant gains, with Samsung Electronics rising 4.74 percent to 198,000 won, and SK hynix climbing 6.69 percent to 1.2 million won. Samsung Electro-Mechanics and SK Square also saw notable increases.
Airline stocks benefited from lower oil prices, with Korean Air and Asiana Airlines surging by 11.51 percent and 11.68 percent, respectively. In other sectors, Hanwha Aerospace and LG Energy Solution also posted gains.
The Korean won was quoted at 1,337.5 won against the U.S. dollar, strengthening by 9.6 won from the previous session's close. In the bond market, prices rose as yields fell, with the yield on three-year Treasurys decreasing by 0.6 basis point to 3.633, and the return on five-year government bonds dropping 1.3 basis points to 3.718.