Seoul: South Korean stocks started sharply higher Monday, driven by gains in tech shares, despite heightened military tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) rose 222.40 points, or 3.33 percent, to 6,909.61 as of 9:15 a.m.
According to Yonhap News Agency, military attacks intensified overnight between the United States and Iran. Tehran announced that it targeted three oil tankers using an unauthorized route through the Strait of Hormuz and several U.S.-linked vessels, in retaliation for U.S. attacks on Iranian tankers.
Meanwhile, U.S. markets saw a decline on Friday, with stocks closing lower due to strong job data raising the possibility of Federal Reserve rate hikes. The Dow Jones Industrial Average fell 0.51 percent, and the Nasdaq Composite declined 0.29 percent. Despite this, the PHLX semiconductor index rose 3.38 percent, buoyed by the release of OpenAI's new GPT-6 Astra, which is anticipated to increase demand for memory chips.
In Seoul, tech shares led the robust market opening. Chip giant Samsung Electronics saw a rise of 4.4 percent, while its competitor SK hynix soared 5.89 percent. Hanmi Semiconductor, a prominent chip manufacturing equipment firm, vaulted 5.22 percent, and LG Electronics surged 8.44 percent. Additionally, top carmaker Hyundai Motor advanced 1.96 percent, and defense giant Hanwha Aerospace climbed 1.04 percent.
The Korean won was trading at 1,344.8 won against the U.S. dollar as of 9:15 a.m., an increase of 5 won from the previous stock trading session.