(LEAD) Seoul shares open at fresh high on hopes for U.S.-Iran peace deal, extended chip rally

Lead

South Korean stocks have repeatedly opened at record highs in recent weeks, as investors bet on a potential U.S.-Iran peace deal and continued strength in technology and artificial intelligence (AI) shares, according to multiple reports from Yonhap News.

The benchmark Korea Composite Stock Price Index (KOSPI) opened at a fresh high of 6,782.93 on May 4, up 2.79 percent from the previous session, and was trading 2.38 percent higher at 6,756.17 by 9:15 a.m., Yonhap reported. The index had closed at an all-time high of 6,690.90 on April 30, before falling 1.38 percent to 6,598.87 on May 1.

Reports from the same wire service detailed a series of record openings throughout April and May, with the KOSPI topping the 7,000-point mark for the first time on May 6 and later surpassing 8,000 points in mid-May. On May 27, stocks traded sharply higher above the 8,400-point level, and on June 1, the index was up 4.39 percent to 8,858.26 by late morning.

Coverage Comparison

The reports from Yonhap consistently highlighted two main drivers behind the record runs: hopes for a resolution to the conflict between the United States and Iran, and a rally in large-cap technology stocks, particularly those tied to AI and semiconductors.

On April 23, Yonhap reported that stocks opened at a record high as the benchmark approached the 6,500-point level, driven by large-cap tech gains and the U.S. decision to indefinitely extend its ceasefire with Iran. That same day, a separate Yonhap report noted that the index had set new record highs for three consecutive sessions through Thursday, with big-cap tech shares leading the upturn.

In early May, reports emphasized the peace-deal angle. On May 4, Yonhap attributed the surge to U.S. President Donald Trump's announcement of plans to free ships stranded in the Strait of Hormuz, while Washington and Tehran exchanged proposals for peace talks. Two days later, the index topped 7,000 points after Trump said he had paused U.S. efforts to guide vessels out of the strait as part of efforts to finalize a settlement with Iran. On May 7, stocks opened at a fresh record high, driven by "simmering signs" of a peace deal and an extended advance in chipmakers, with Trump saying he believed a deal could be reached before his trip to China slated for May 14.

By mid-May, the focus shifted more toward Wall Street and tech. On May 14, Yonhap reported that stocks opened at a new high as large-cap shares took a cue from an overnight rally on the U.S. market, boosted by major tech companies. The report noted that Wall Street was buoyed by news that chiefs from AI chip giant Nvidia, Tesla, Apple and other major tech companies joined Trump's business delegation to Beijing, rather than by lingering concerns over little progress in U.S.-Iran peace talks.

Later in May, the AI narrative dominated. On May 27, Yonhap reported that stocks traded sharply higher, driven by renewed optimism for AI-related tech shares, with the S&P 500 and Nasdaq hitting record closing highs overnight. The report noted that AI-fueled optimism offset concerns that U.S. strikes on Iran dampened prospects for peace in the Middle East.

On June 1, Yonhap reported that stocks traded sharply higher as investors continued to snap up tech shares, offsetting a lack of progress in U.S.-Iran peace talks. The report noted that Washington and Tehran have been negotiating over a draft agreement aimed at ending the conflict and reopening the Strait of Hormuz, but the lack of a meaningful breakthrough over the weekend helped push oil prices higher.

Key Claims

• The KOSPI opened at record highs on multiple occasions between late April and early June, with the index approaching 6,500 points in late April, topping 7,000 points on May 6, and reaching above 8,400 points by late May, according to Yonhap.
• The United States extended its two-week ceasefire with Iran indefinitely, a decision that helped drive gains on April 23, as reported by Yonhap.
• On May 4, President Trump announced plans to free ships stranded in the Strait of Hormuz as a humanitarian gesture to aid neutral countries in the U.S.-Israeli war with Iran, with Iran blocking nearly all shipping from the Persian Gulf for more than two months, according to Yonhap.
• On May 6, Trump announced he had paused U.S. operations to guide stranded vessels out of the Strait of Hormuz to finalize a settlement with Iran, as reported by Yonhap.
• On May 7, Yonhap reported that Washington and Tehran were working on a one-page memorandum to end their war and set a framework for detailed nuclear negotiations, and that Trump believed a deal could be reached before his China trip slated for May 14.
• Large-cap tech and AI-related shares have been key drivers of the KOSPI's record-breaking run, with Samsung Electronics and SK hynix repeatedly leading gains, according to multiple Yonhap reports.
• Overnight gains on Wall Street, particularly in tech-heavy indices, have frequently contributed to Seoul's positive openings, as reported by Yonhap on several occasions.
• South Korea's exports surged 53 percent from a year earlier to a new monthly high of US$87.8 billion in May, driven by the semiconductor supercycle, according to government data cited by Yonhap on June 1.
• The Korean won fluctuated against the U.S. dollar during the period, trading between 1,447 and 1,508.75 won per dollar in the sessions reported by Yonhap.