South Korea's benchmark KOSPI index jumped nearly 3 percent in early trading on Wednesday, rising to around 6,143 points as optimism grew over a potential second round of peace negotiations between the United States and Iran, following a first round that ended without agreement. The rally tracked overnight gains on Wall Street, where the Dow Jones rose 0.66 percent and the Nasdaq gained 1.96 percent, with major South Korean firms including Samsung Electronics, SK Hynix, and Hyundai Motor posting significant gains. The surge is notable given that the KOSPI has been under pressure since late February, when US and Israeli air strikes on Iran rattled regional markets, making any diplomatic progress between Washington and Tehran a closely watched indicator for investor confidence across Asia.
Mosaic News
South Korean stocks surge on hopes for second round of US-Iran peace talks[Updated]
The KOSPI extended its gains by Thursday morning, climbing a further 2.17 percent to reach 6,223.45 points as of 11:20 a.m. local time, with Hyundai Motor surging 6.1 percent and affiliate Kia rising 4.75 percent, while major shipbuilders HD Hyundai Heavy Industries and Hanwha Ocean also posted gains of over 3 percent. President Trump said in a Fox News interview that the US-Israeli war against Iran is "very close to over," and White House Press Secretary Karoline Leavitt confirmed further talks "would very likely" take place in Islamabad, where a Pakistani delegation has arrived in Tehran to help arrange a second round. However, Iran threatened to shut down the Red Sea, Gulf, and Sea of Oman unless the US lifted its ongoing naval blockade of Iranian ports, a measure Trump imposed after the first round of negotiations failed over the weekend. US Vice President JD Vance, who led the initial talks, said Iran is being offered a "grand bargain" to end the conflict, with Iran's foreign ministry confirming that "several messages" have been exchanged via Islamabad since Sunday.