SEOUL, March 10 (AJP) — South Korean shares swung back as sharply as their fall, riding on a rapid retreat in oil prices after the U.S. president vowed the fighting in the Middle East could be “ended soon” and G7 ministers scrambled to take concerted action to ease prices through a possible release of strategic reserves.
A sidecar was issued as soon as the opening bell on Tuesday, but unlike the previous morning it was triggered to cool buy-side momentum as both the KOSPI and KOSDAQ soared more than 5 percent, recouping most of the KOSPI’s near 6 percent drop on Monday.
A buy-side sidecar is a market stabilization mechanism that temporarily halts program trading for five minutes when KOSPI 200 futures rise more than 5 percent from the reference price and sustain that level for at least one minute.
The benchmark KOSPI was up 5.33 percent at 5,534.47 and the KOSDAQ gained 2.61 percent to 1,153.89 as of 9:30 a.m.
Foreign investors, who sold more than 3 trillion won ($2.1 billion) worth of shares and institutions more than 1 trillion won the previous day, changed positions with retail investors to become heavy buyers.
The volatile swings in Seoul have hinged heavily on oil price movements and remarks from the U.S. president.
President Donald Trump said he expects the war in Iran to end “very soon,” but also described it as “the beginning of building a new country,” as the administration offered differing characterizations of how long the operation may last.
He also warned Iran could pay an “incalculable” price if its military disrupts oil tankers, as major importers grapple with higher prices since the war began.
Speaking to reporters at his Miami-area golf club in his first formal news conference since the U.S. and Israel began strikes on Iran, Trump said he does not expect the war to end next week, but “soon.”
His contradictory comments sent mixed signals to oil markets.
U.S. benchmark West Texas Intermediate crude was trading at $88.81 a barrel after swinging within roughly a $28 range, while global benchmark Brent crude settled at $90.33 a barrel, sharply below an intraday high of $119.50.
Oil prices retreated after finance ministers from the Group of Seven nations said in a joint statement they could release strategic petroleum reserves if needed to address surging prices and potential supply disruptions.
Overnight in New York, all three major stock indexes also rose. The Dow Jones Industrial Average gained 0.50 percent, while the S&P 500 and the Nasdaq Composite advanced 0.83 percent and 1.38 percent, respectively.
Most major stocks traded higher, with the exception of defense firms Hanwha Aerospace and Hanwha Systems, which fell 2.37 percent and 5.47 percent, respectively.
Samsung Electronics rose 8.18 percent to 187,700 won, while SK hynix gained 9.33 percent to 914,000 won.
Automakers also advanced, with Hyundai Motor climbing 6.11 percent to 538,000 won and Kia rising 4.89 percent to 160,900 won.
Among other heavyweights, LG Energy Solution added 3.76 percent to 373,000 won, while Samsung Biologics gained 3.04 percent to 1,627,000 won and Naver edged up 2.06 percent to 223,000 won.
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