Seoul: South Korean shares opened significantly higher Tuesday, driven by the easing of global crude prices and optimism surrounding the potential reopening of the Strait of Hormuz, which lifted major U.S. stock indexes overnight. The benchmark Korea Composite Stock Price Index (KOSPI) jumped 147.5 points, or 2.66 percent, reaching 5,697.35 in the first 15 minutes of trading.
According to Yonhap News Agency, the buoyant market sentiment followed a strong performance on Wall Street, where the Dow Jones Industrial Average rose by 0.8 percent, the tech-heavy Nasdaq Composite increased by 1.2 percent, and the S and P 500 gained 1 percent. These gains marked the best day for the U.S. stock market since the airstrikes by the United States and Israel on Iran last month.
The positive outlook was further supported by U.S. President Donald Trump's call for international assistance, including from South Korea, to help ensure the reopening of the Strait of Hormuz, a vital route for Middle Eastern oil exports. Additionally, comments from International Energy Agency (IEA) Executive Director Fatih Birol about the potential release of more oil from emergency stockpiles boosted expectations. The IEA had already announced a planned release of 40 million barrels by its member countries.
Brent crude oil prices, recognized as the international oil benchmark, fell by 2.8 percent to US$100.21 per barrel, while U.S. benchmark West Texas Intermediate (WTI) prices decreased by 5.3 percent to $93.5.
In Seoul, major top-cap stocks experienced strong openings. Samsung Electronics, leading the market, rose 3.92 percent, with chipmaking competitor SK hynix up by 2.57 percent. Hyundai Motor surged 6.32 percent, along with its sister company Kia, which climbed 4.57 percent. Hyundai Mobis, an auto-parts affiliate of Hyundai Motor, also saw a 3.87 percent increase.
SK Square, an artificial intelligence (AI) investment firm, escalated by 5.69 percent, while top battery maker LG Energy Solution added 2.19 percent. In the bio industry, Samsung Biologics increased by 1.79 percent, and Celltrion rose by 2.5 percent. Internet portal operator Naver gained 2.52 percent.
Conversely, defense firm Hanwha Aerospace was among the few to decline, dropping by 2.78 percent. The Korean won was trading at 1,491.8 against the U.S. dollar at 9:15 a.m., up 5.7 won from the previous session.