Key facts
- South Korean stocks closed up nearly 1 percent on Tuesday, driven by technology shares.
- The benchmark KOSPI index rose 0.97 percent to 8,476.47.
- Investor sentiment was boosted by hopes of U.S.-Iran talks to ease Strait of Hormuz tensions.
- Foreign investors sold a net 3.79 trillion won worth of shares.
- The Korean won weakened against the U.S. dollar, trading at 1,549.4 won per dollar.
South Korean stocks closed higher on Tuesday, with the benchmark KOSPI index rising 0.97 percent to 8,476.47, driven by gains in technology shares. Investor sentiment was buoyed by the prospect of renewed U.S.-Iran talks in Qatar aimed at easing tensions in the Strait of Hormuz, which alleviated concerns over potential disruptions to global oil supplies.
Wall Street also saw a rebound overnight, with the Nasdaq composite jumping 2.07 percent. This positive sentiment carried over to the Seoul market, with semiconductor shares seeing increased buying following recent losses. Technology and electricity stocks also rose on expectations of significant investment in semiconductor infrastructure.
Market bellwether Samsung Electronics gained 3.41 percent, and chip giant SK hynix rose 0.84 percent. Samsung Electro-Mechanics saw a significant jump of 7.16 percent after announcing a large supply deal for multilayer ceramic capacitors for AI servers.
However, battery shares retreated due to profit-taking. LG Energy Solution plunged 9.61 percent, and Samsung SDI fell 4.88 percent.
In currency markets, the South Korean won weakened against the U.S. dollar, trading at 1,549.4 won per dollar, down 4.2 won from the previous session. This weakening occurred as foreign investors sold a net 3.79 trillion won worth of shares.