SEOUL, June 16 (AJP) -South Korea's benchmark index maintained its upward momentum from the preliminary U.S.-Iran peace deal, bucking a broadly cautious mood across Asia as investors awaited an expected rate hike from the Bank of Japan.
As of 10:30 a.m., the benchmark KOSPI stood at 8,610.00, up 0.8 percent from the previous session. The index moved between an intraday high of 8,747.48 and a low of 8,540.41. The KOSPI 200 rose 0.9 percent to 1,372.00, after moving between an intraday high of 1,396.59 and a low of 1,357.84.
Foreign investors bought 52.5 billion won ($34.7 million) worth of shares on the main bourse, as institutions purchased 210.9 billion won. Retail investors sold 266.3 billion won.
Defense and aerospace shares led gains in Seoul, with the sector rising 9 percent. Firstec jumped 23 percent to 9,880 won, while LIG Defense & Aerospace surged 20.8 percent to 1,021,000 won. Hanwha Systems also advanced 7.8 percent to 107,300 won.
Construction shares also rallied on expectations that reconstruction projects in the Middle East could gain momentum after the conflict. The construction sector rose 7.5 percent, led by Ilsung Construction, which climbed 30 percent to 1,677 won, and Sangji Construction, which gained 27.1 percent to 9,500 won. Among major construction names, Daewoo Engineering & Construction rose 17.5 percent to 26,850 won, while DL E&C gained 11.5 percent to 88,100 won.
Trading companies and distributors also advanced, with the sector up 4.5 percent. POSCO International rose 6 percent to 63,700 won, while Hyundai Corp. gained 1.2 percent to 25,750 won.
Large-cap technology shares were mixed. SK hynix rose 1.8 percent to 2,328,000 won, while Samsung Electronics slipped 0.2 percent to 336,500 won. LG Innotek gained 4.9 percent to 1,268,000 won.
Other major names were weaker. Hyundai Motor fell 2.6 percent to 630,500 won, while HLB dropped 5.6 percent to 42,950 won. The TIGER U.S. Space Tech ETF declined 5.9 percent to 12,060 won.
The secondary KOSDAQ fell 1.1 percent to 1,022.50, after moving between a high of 1,040.86 and a low of 1,016.39. Retail investors bought 333.5 billion won, while foreign investors and institutions sold 176.5 billion won and 145.2 billion won, respectively.
The won strengthened 0.2 percent to 1,512.50 against the U.S. dollar, as the prospect of a peace deal lifted risk sentiment and eased concerns over oil supply disruptions.
Oil prices edged higher Tuesday after tumbling nearly 5 percent in the previous session. West Texas Intermediate rose 0.5 percent to $81.10 a barrel, while Brent crude gained 0.4 percent to $83.50, as investors awaited further details on the agreement, which is expected to be signed in Switzerland on Friday.
The preliminary deal is expected to reopen the Strait of Hormuz and restore the free flow of crude oil from the Persian Gulf, though Washington and Tehran have yet to disclose the full terms of the memorandum. Shipping companies have remained cautious, delaying some vessels through the route until there is greater clarity.
Japan's Nikkei 225 fell 0.2 percent to 69,199.50, China's Shanghai Composite slipped 0.2 percent to 4,087.60, and Hong Kong's Hang Seng Index declined 0.6 percent to 24,720.00.
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