StockMarket – Seoul Shares Surge as Hopes Rise for Iran Peace Deal
StockMarket – South Korean stocks posted strong gains during Friday’s trading session as investor confidence improved following comments from U.S. President Donald Trump suggesting that a potential agreement related to the Iran conflict could be finalized soon.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed significantly in morning trade, advancing 606.46 points, or 7.81 percent, to reach 8,370.41 by 11:20 a.m. local time. The market opened with substantial momentum and remained comfortably above the 8,000-point level throughout the session.
Investor Demand Lifts Major Technology Shares
Market participants, particularly institutional and foreign investors, actively purchased large-cap technology stocks, helping drive the broader index higher. The positive mood reflected growing optimism across financial markets following developments related to geopolitical tensions in the Middle East.
Technology companies led the rally. Samsung Electronics recorded a gain of 11.37 percent, while semiconductor manufacturer SK hynix rose by 8 percent. The strong performance of these firms provided considerable support to the overall market.
Broad-Based Gains Across Key Industries
The upward movement was not limited to the technology sector. Major companies across automotive, consumer electronics, and financial services also recorded notable increases.
Hyundai Motor advanced 5.53 percent during the session, while LG Electronics added 6.19 percent. Financial giant KB Financial posted an 8.05 percent rise, reflecting widespread investor confidence across different sectors of the economy.
Analysts noted that the positive trend mirrored overnight gains on Wall Street, where investors reacted favorably to signs that diplomatic efforts regarding Iran could be progressing.
Trump Signals Possible Agreement Soon
Speaking on Thursday in the United States, President Trump stated that Washington had achieved what he described as a significant settlement concerning the conflict involving Iran. He indicated that an agreement could potentially be signed as early as the upcoming weekend.
According to Trump, negotiations have reached an advanced stage and the relevant documents are nearing completion. However, Iranian authorities have not officially confirmed the existence of such an agreement.
The possibility of a diplomatic breakthrough has been closely monitored by global investors, who remain sensitive to developments that could affect energy supplies and international trade routes.
Strait of Hormuz Remains a Key Focus
The ongoing conflict has raised concerns about shipping activity through the Strait of Hormuz, one of the world’s most important maritime passages for oil, fertilizer, and other essential commodities.
Any disruption in the region has the potential to impact global supply chains and energy prices. Market observers believe that progress toward a peace arrangement could help ease concerns surrounding transportation routes and commodity markets.
Trump also suggested that the Strait of Hormuz could reopen fully following the completion of the proposed agreement, further strengthening expectations of improved stability in the region.
Central Bank Maintains Firm Position on Interest Rates
Meanwhile, South Korea’s central bank maintained its cautious approach to monetary policy. In a message commemorating the Bank of Korea’s 76th anniversary, Governor Shin Hyun-song reiterated the need for prompt action on interest rates.
His remarks reinforced the institution’s commitment to controlling inflationary pressures and maintaining financial stability despite ongoing global uncertainties.
Korean Currency Strengthens
The South Korean won also showed improvement against the U.S. dollar. The currency was quoted at 1,519.9 won per dollar, representing a gain of 9 won compared with the previous trading session.
Investors continue to watch both geopolitical developments and central bank policy signals closely, as these factors are expected to influence market direction in the coming days.