The move followed comments from U.S. President Donald Trump the previous day, signaling progress in peace negotiations with Iran, raising expectations for a possible end to the conflict in the Middle East and also reducing fears of disruptions to global energy supplies. Brent crude hovered near US$100 per barrel, while West Texas Intermediate traded around $93, providing relief to energy-importing economies.
Across Asia, markets moved in tandem. Japan's Nikkei 225 surged 2.9 percent, Taiwan's TAIEX climbed 2.54 percent, while China's Shanghai Composite and Hong Kong's Hang Seng rose 1.3 percent and 0.6 percent, respectively, reflecting a renewed appetite for risk assets.
In Seoul, the benchmark KOSPI rose 1.6 percent to close at 5,642.2 points, extending gains after fluctuations throughout the day's trading session.
Institutional investors drove the rally, buying 2.32 trillion won ($1.5 billion), while foreign investors sold 1.29 trillion won and retail investors offloaded 1.33 trillion won.
The divergence showed that offshore investors are still cautious, while domestic institutional investors supported the market, meaning the rebound was driven more by local liquidity than a full return of foreign investors.
Technology shares showed mixed. Samsung Electronics slipped 0.4 percent to 189,000 won, while SK hynix edged up 0.9 percent to 995,000 won, supported by expectations of continued strength in AI-driven memory demand.
Technology shares were mixed. Samsung Electronics slipped 0.4 percent to 189,000 won, while SK hynix edged up 0.9 percent to 995,000 won, supported by expectations of continued strength in artificial intelligence (AI)-driven memory demand.
Autos and platform stocks moved higher, with Hyundai Motor rising 1.8 percent to 501,000 won, NAVER gaining 0.9 percent to 215,500 won and Kakao advancing 1.8 percent to 49,050 won. Battery maker LG Energy Solution added 0.4 percent.
The tech-heavy KOSDAQ outperformed, jumping 3.4 percent to 1,159.6 after touching a high of 1,160.1.
Foreign investors led buying on the secondary board, purchasing 373.4 billion won, as institutions added 12.3 billion won, while retail investors sold 381.1 billion won.
Gains were concentrated in high-beta and growth-oriented names. Samchundang Pharm surged 19.3 percent on continued optimism over its oral insulin development, while Pearl Abyss jumped 23.3 percent following strong global sales momentum for its new releases. Hanwha Systems also rose 7.3 percent on expectations of expanding aerospace and defense cooperation.
Despite the broad rally overall, underlying risks remained. The Korean won stayed near the 1,500 level against the dollar, while the VIX, a real-time market indicator that measures the market's expectation of 30-day forward-looking volatility, rose to 26.95, signaling elevated market volatility.
Despite the broad rally overall, underlying risks remained. The Korean won stayed near the 1,500 level against the dollar. The VIX, a real-time indicator that measures the market's expectation of 30-day volatility, rose to 26.95, suggesting lingering geopolitical concerns and continued global uncertainty.
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