Seoul: South Korean stocks opened sharply higher Thursday amid rising hopes for a possible peace deal between the United States and Iran, along with an end to labor unrest at Samsung Electronics. These developments triggered a buy-side sidecar in the market. The benchmark Korea Composite Stock Price Index (KOSPI) climbed 277.42 points, or 5.27 percent, reaching 7,388.52 by 9:30 a.m., after starting 3.85 percent higher.
According to Yonhap News Agency, stock gains led to a temporary suspension of a buy-side order in the KOSPI futures for five minutes at around 9:23 a.m., as reported by the Korea Exchange. U.S. stocks had advanced overnight when crude oil prices declined following U.S. President Donald Trump's announcement that Washington was in the "final stages" of talks with Iran. This positive momentum was reflected in the U.S. markets, as the S and P 500 rose by 1.08 percent, the Dow Jones Industrial Average gained 1.31 percent, and the Nasdaq composite added 1.55 percent.
Investor sentiment received a further boost when Samsung Electronics reached a tentative agreement with its labor union, averting a major strike that had been planned for Thursday. This development eased concerns at the world's largest memory chipmaker and contributed to gains in tech shares. U.S. chip giant Nvidia's optimistic forecast for second-quarter revenue and an $80 billion share repurchase program also supported the positive trend. Major chipmakers, including market leader Samsung Electronics, which surged 6.07 percent, and SK hynix, which advanced 4.53 percent, benefitted from these factors.
Shares of Samsung affiliates also saw significant gains, with Samsung Electro-Mechanics soaring 8.77 percent and Samsung Life increasing by 11.54 percent. The auto sector experienced upward movement as well, with Hyundai Motor rising 7.77 percent, Kia climbing 8.77 percent, and Hyundai Mobis jumping 18.32 percent. Meanwhile, the Korean won was trading at 1,499.0 won against the U.S. dollar at 9:15 a.m., marking an increase of 6.9 won from the previous session.