South Korean shares rise more than 5% as US, Iran reach preliminary agreement

SEOUL: Round-up of South Korean financial markets: 

South Korean shares rose more than 5% on Monday after the United States and Iran reached a preliminary deal to end their war.

The benchmark KOSPI closed up 422.36 points, or 5.20%, at 8,545.98.

During the session, the index triggered a “sidecar” trading curb.

US and Iranian officials said on Sunday they had agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Iran’s nuclear programme to further negotiations.

“The market firmed on the US-Iran deal, which also reduced uncertainty over the Federal Reserve’s policy meeting this month,” said Kim Joon-young, an analyst at iM Securities.

Among index heavyweights, chipmaker Samsung Electronics rose 4.50%, while peer SK Hynix gained 6.42%. Battery maker LG Energy Solution climbed 5.13%.

Hyundai Motor and sister automaker Kia Corp were up 6.59% and up 0.42%, respectively.

Steelmaker POSCO Holdings added 4.77%, while drugmaker Samsung BioLogics rose 2.86%. Of the 918 issues traded, 676 shares advanced, while 207 declined.

Foreigners were net buyers of shares worth 982.4 billion won ($649.74 million).

The won was quoted at 1,511.1 per dollar on the onshore settlement platform, 0.48% higher than its previous close at 1,518.3.

In money and debt markets, June futures on three-year treasury bonds gained 0.18 point to 103.54.

The most liquid three-year Korean treasury bond yield fell by 7.3 basis points to 3.747%, while the benchmark 10-year yield fell by 8.6 basis points to 4.115%. ‑Reuters