SEOUL, April 01 (AJP) - Asian markets surged Wednesday, with Seoul leading gains as investors moved on bargain-hunting opportunities amid signs the Middle East conflict may be winding down.
U.S. President Donald Trump is due to hold a press conference later Wednesday after signaling a possible withdrawal of U.S. forces from Iran within “two to three weeks.”
Overnight, the Dow Jones Industrial Average rose 2.5 percent, while the S&P 500 and Nasdaq Composite gained 2.9 percent and 3.8 percent, respectively. The CBOE Volatility Index (VIX) plunged 17.5 percent to 25.25, signaling a sharp easing in market anxiety.
The U.S. dollar sharply retreated to 1,507.3 won after hovering above 1,530 won in the previous session.
Oil prices remained elevated, with Brent crude rising 1.7 percent to $105.7 per barrel and West Texas Intermediate gaining 1.5 percent to $102.9, as supply concerns persisted despite improving risk sentiment.
In Seoul, the benchmark KOSPI surged 6.2 percent to 5,370.7 in early trade, reclaiming the 5,300 level. The rally triggered a buy-side sidecar at 9:07 a.m., temporarily halting program buy orders after futures jumped more than 5 percent.
The gains were driven by hopes of easing geopolitical tensions, which lifted risk appetite and spurred institutional buying in large-cap stocks.
Institutional investors led the rally, buying 1.05 trillion won ($697 million) worth of shares, while retail and foreign investors sold 1.00 trillion won and 135.8 billion won, respectively.
Large-cap stocks advanced broadly.
In semiconductors, Samsung Electronics surged 8.5 percent to 181,400 won, while SK hynix climbed 8.4 percent to 875,000 won.
Automakers also gained, with Hyundai Motor rising 7.4 percent to 478,500 won.
Industrial and defense-related shares outperformed, with Doosan Enerbility rising 6.8 percent to 98,000 won, SK Ocean Plant jumping 10.8 percent to 29,750 won, and Hanwha Systems surging 14.5 percent to 130,600 won. Hyundai Engineering & Construction gained 9.6 percent to 155,700 won.
The KOSDAQ also rallied, rising 5.0 percent to 1,105.7 as of 10:30 a.m.
Institutional and foreign investors supported the gains, purchasing 145.9 billion won and 150.5 billion won, respectively, while retail investors sold 304.3 billion won.
Improved risk sentiment fueled buying in high-beta and thematic stocks.
Biotech shares advanced, with Alteogen rising 4 percent to 355,000 won, while battery-related stock EcoPro BM gained 3.6 percent to 199,300 won.
Robotics-related shares outperformed, as Rainbow Robotics jumped 7.3 percent to 559,000 won.
Elsewhere in Asia, Japan’s Nikkei 225 climbed 3.6 percent, Hong Kong’s Hang Seng Index gained 2.2 percent, and China’s Shanghai Composite rose 1.2 percent, reflecting improved risk appetite.
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