Key facts
- Seoul shares rebounded on Monday, tracking U.S. market gains.
- The KOSPI index traded 0.37 percent higher after an initial dip.
- U.S. stocks rose Friday, boosted by SK hynix's successful U.S. share offering.
- Renewed Middle East tensions, including U.S. strikes on Iran, tempered investor sentiment.
- Major South Korean companies like Samsung Electronics and Hyundai Motor saw mixed performance.
Seoul shares rebounded on Monday, reversing an earlier decline and tracking gains on Wall Street, though investor sentiment remained cautious due to renewed Middle East tensions. The benchmark Korea Composite Stock Price Index (KOSPI) opened 0.85 percent lower but turned positive, trading 0.37 percent higher at 7,503.42 as of 9:15 a.m.
The rebound was influenced by Friday's gains on U.S. stock markets, which were partly buoyed by South Korean chipmaker SK hynix's successful multibillion-dollar U.S. share offering. SK hynix's American depositary receipts (ADRs) closed at $168 on the Nasdaq, significantly above their offering price of $149. The Dow Jones Industrial Average rose 0.29 percent to 52,637.01, and the tech-heavy Nasdaq composite also climbed 0.29 percent to 26,281.61.
However, renewed tensions in the Middle East cast a shadow over market sentiment. On Sunday, the U.S. military conducted strikes against Iran in response to Iran's drone attacks on U.S. allies in the region.
In Seoul, large-cap stocks showed mixed performance. Market leader Samsung Electronics saw a 0.7 percent increase, while top automaker Hyundai Motor climbed 3.72 percent. Leading refiner SK Innovation jumped 8.36 percent, and battery manufacturer LG Energy Solution advanced 4.45 percent. Conversely, chip giant SK hynix fell 4.36 percent, and leading wireless provider SK Telecom declined 0.23 percent.
The Korean won was trading at 1,501.40 won against the U.S. dollar, down 2.9 won from the previous session, reflecting ongoing currency market dynamics.