South Korean Stocks See Sharp Gains as Mideast Tensions Ease
The benchmark KOSPI rocketed 377.56 points, or 6.87 percent, to close at 5,872.34, while the tech-heavy KOSDAQ surged 53.12 points, or 5.12 percent, to finish at 1,089.85 — both indexes riding a sweeping relief rally triggered by the announcement of a two-week US-Iran truce.
The momentum was so forceful that the Korea Exchange activated buy-side sidecars on both markets during the morning session, a circuit-breaker mechanism designed to temporarily suspend program trading. The KOSPI sidecar engages when KOSPI 200 futures move more than 5 percent within a sustained one-minute window, halting automated orders for five minutes. The KOSDAQ sidecar kicks in when KOSDAQ 150 futures shift beyond 6 percent while the KOSDAQ 150 index simultaneously moves more than 3 percent for at least one minute.
Foreign and institutional investors led the charge higher, while retail traders moved in the opposite direction, offloading positions to secure profits amid the spike.
On the currency front, the South Korean won closed its daytime session at 1,470.6 won per US dollar as of 3:30 p.m. local time — strengthening by 33.6 won against the previous day's close, marking the won's strongest daytime finish in roughly a month, last seen around March 11.
Among blue-chip performers, tech heavyweights dominated the leaderboard. Samsung Electronics surged 7.12 percent, while memory chip powerhouse SK Hynix skyrocketed 12.77 percent. Automotive giant Hyundai Motor climbed 7.40 percent, and energy infrastructure firm Doosan Enerbility gained 6.64 percent. Shipbuilding leader HD Hyundai Heavy Industries advanced 3.09 percent, and biopharmaceutical contract manufacturer Samsung Biologics edged up 0.76 percent.
Not all sectors shared in the rally, however. Battery manufacturer LG Energy Solution slipped 0.61 percent, and defense heavyweight Hanwha Aerospace retreated 3.45 percent — a pullback that reflected easing demand for defense assets as geopolitical risks temporarily receded.
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