South Korean stocks rise on hopes of US-Iran peace talks

Round-up of South Korean financial markets:

South Korean shares rose on Wednesday as prospects of fresh talks between the United States and Iran to potentially end the war lifted sentiment.

The won was almost flat, while the benchmark bond yield fell.

The benchmark KOSPI was up 173.66 points, or 2.91%, at 6,141.41, as of 0222 GMT.

Among index heavyweights, chipmaker Samsung Electronics rose 3.75%, while peer SK Hynix gained 4.71%. Battery maker LG Energy Solution climbed 1.63%.

A battery plant co-owned by Hyundai Motor and LG Energy Solution, which was raided by US immigration agents last year, is ready to open this month after delays, Semafor reported on Tuesday.

Hyundai Motor and sister automaker Kia Corp were up 3.56% and up 2.21%, respectively.

Steelmaker POSCO Holdings added 1.66%, while drugmaker Samsung BioLogics rose 2.93%. Of the total 905 traded issues, 573 shares advanced, while 293 declined.

Incoming Bank of Korea Governor nominee Shin Hyun-song signalled the potential for tighter monetary policy, stating the central bank must respond if supply-side shocks from the Iran war lead to prolonged inflationary pressure.

He also warned against the “sharp weakening” of the won against dollar.

Foreigners were net buyers of shares worth 429.4 billion won.

The won was quoted at 1,472.6 per dollar on the onshore settlement platform, 0.01% higher than its previous close at 1,472.7. The KOSPI has risen 45.73% so far this year.

The won has weakened 2.2% against the dollar this year. In money and debt markets, June futures on three-year treasury bonds gained 0.04 point to 104.39.

The most liquid three-year Korean treasury bond yield fell by 1.3 basis points to 3.325%, while the benchmark 10-year yield fell by 1.4 basis points to 3.647%.‑Reuters