Key facts
- South Korean stocks closed up 4.6% on Friday, reaching 8,123.62.
- The rally was driven by hopes of a resolution to the U.S.-Iran conflict.
- Investor confidence was also boosted by speculation of a Federal Reserve rate hike.
- The KOSPI index has gained 94% year-to-date, making it the world's best-performing market.
- Tech heavyweights were particularly strong performers.
Seoul stocks experienced a significant surge on Friday, with the benchmark Korea Composite Stock Price Index (KOSPI) closing up 4.63 percent at 8,123.62. The rally was primarily fueled by hopes that the conflict between the United States and Iran could be nearing an end, following President Donald Trump's announcement of a "great settlement." This optimism extended to the Korean won, which strengthened against the U.S. dollar to its highest opening price since June 2.
Earlier reports indicated an even sharper rise, with the KOSPI surging 8.5% on Friday and boasting a 94% year-to-date gain, positioning it as the world's best-performing market. The strength in South Korean stocks, particularly tech heavyweights, is seen as benefiting from the global AI buildout, contributing to the KOSPI's substantial year-to-date performance.
While the index reached an intraday high of 8,434.40, it trimmed some gains by the closing bell due to profit-taking. Media reports also noted the departure of U.S. Air Force planes for Europe, suggesting a potential signing ceremony for the Iran deal could take place in Geneva.