Seoul shares open sharply higher on 2-week ceasefire in U.S.-Iran war
South Korean stocks opened sharply higher Wednesday as Iran said that it would guarantee safe passage through the Strait of Hormuz during a two-week ceasefire period, Yonhap reports.
Opening at 5.64 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 331.13 points, or 6.03 percent, to 5,825.91 as of 9:20 a.m.
Following the surge, the Korea Exchange (KRX) activated a buy-side sidecar, temporarily halting program-driven buy orders in KOSPI futures.
U.S. President Donald Trump said in a social media post that the U.S. would suspend attacks on Iran for two weeks if Tehran agrees to the "complete, immediate and safe opening" of the crucial Strait of Hormuz.
Trump added that the U.S. has received a 10-point proposal from Iran, which he considers a "workable basis on which to negotiate."
Iran's foreign ministry also released a statement accepting the two-week ceasefire proposal.
Trump previously urged Iran to open the crucial waterway by 8:00 p.m. Tuesday (U.S. time), warning the U.S. would otherwise strike Iran's power plants and bridges.
Top market cap Samsung Electronics shot up 7.12 percent, and SK hynix jumped 9.72 percent.
Financial firms also opened higher, with KB Financial advancing 7.77 percent and Samsung Life Insurance adding 6.98 percent.
Hyundai Motor increased 4.65 percent, and Kia gained 4.64 percent.
Battery makers were mixed, with LG Energy Solution falling 0.24 percent, while Samsung SDI added 1.97 percent.
The local currency was trading at 1,477.2 won against the greenback at 9:20 a.m., sharply up 27 won from the previous session.
