Key facts
- Seoul shares opened higher on Wednesday, following gains on Wall Street.
- The KOSPI index rose 3.3% at the opening bell.
- The Dow Jones Industrial Average and Nasdaq Composite also closed higher overnight.
- Investor sentiment is being influenced by ongoing Middle East tensions.
- U.S. President Donald Trump has altered his proposed fee on cargo through the Strait of Hormuz.
Seoul shares opened higher on Wednesday, tracking overnight gains on Wall Street, as investors assessed continued Middle East tensions. The benchmark Korea Composite Stock Price Index (KOSPI) surged 226.08 points, or 3.3 percent, to 7,082.91 at the opening bell. This followed a rebound on Tuesday, where the index closed 0.73 percent higher after a significant sell-off in technology stocks had previously caused an 8.95 percent plunge.
On Wall Street, the Dow Jones Industrial Average rose 0.02 percent to 52,508.27, and the tech-heavy Nasdaq Composite climbed 0.9 percent to 26,107.01. Investor sentiment remains cautious due to renewed tensions between the United States and Iran in the Middle East.
U.S. President Donald Trump announced Tuesday (U.S. time) that he would replace his proposed 20 percent 'reimbursement' fee on cargo shipped through the Strait of Hormuz with trade and investment deals with Middle Eastern countries. This policy shift comes after an earlier statement where he indicated the U.S. would act as the 'guardian' of the strait and seek reimbursement at a 20 percent rate.