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Seoul stocks extended their winning streak to a fourth day on Tuesday, closing above the 8,700-point mark as investor sentiment was buoyed by optimism over a U.S.-Iran agreement to end their monthslong conflict and reopen the Strait of Hormuz.

The benchmark Korea Composite Stock Price Index (KOSPI) added 180.62 points, or 2.11 percent, to close at 8,726.6, according to Yonhap News. The rise followed a sharp rally on Monday, when the index was up 386.85 points, or 4.76 percent, to 8,510.47 in late morning trading, as reports said the United States and Iran had reached an agreement to end their war.

Coverage Comparison

Tuesday's market action built on Monday's gains. In its Monday report, Yonhap noted that Seoul stocks were trading sharply higher late Monday morning after the United States and Iran reached an agreement to end their monthslong war, which included reopening the Hormuz Strait. The report highlighted broad gains among market heavyweights, with Samsung Electronics up 3.95 percent and SK hynix jumping 5.81 percent.

By Tuesday, Yonhap reported that the KOSPI had risen more than 2 percent, closing at 8,726.6. The rally was attributed to optimism over a U.S.-Iran deal to end the conflict and reopen the Strait of Hormuz. Overnight, U.S. stocks had rallied after President Donald Trump said a preliminary agreement had already been signed and the strait would be "completely opened" Friday. The S&P 500 rose 1.7 percent, the tech-heavy Nasdaq 100 gained 3.1 percent, and the Dow Jones Industrial Average reached a record high.

Oil prices retreated, with Brent crude falling 4.76 percent to US$83.17 per barrel and U.S. WTI dropping 4.87 percent to $80.75 per barrel, easing concerns over inflation. Bond prices also closed higher, with the yield on three-year Treasurys falling 2.7 basis points to 3.717 percent.

Trade volume was moderate at 582.36 million shares worth 39.42 trillion won (US$26.08 billion), with winners outnumbering losers 518 to 359. Foreigners and institutions bought a net 1.54 trillion won and 703.53 billion won, respectively, while individual investors sold a net 2.18 trillion won.

Key Claims

  • The KOSPI closed at 8,726.6 on Tuesday, up 2.11 percent, after adding 180.62 points, as reported by Yonhap.
  • On Monday, the index was up 386.85 points, or 4.76 percent, to 8,510.47 in late morning trade, according to Yonhap.
  • U.S. President Donald Trump said a preliminary agreement to end the conflict with Iran had been signed and the Strait of Hormuz would be completely opened Friday, as quoted by Yonhap.
  • U.S. stocks rallied overnight: S&P 500 rose 1.7 percent, Nasdaq 100 gained 3.1 percent, and the Dow Jones Industrial Average reached a record high, Yonhap reported.
  • Oil prices fell: Brent crude dropped 4.76 percent to US$83.17 per barrel, and U.S. WTI fell 4.87 percent to $80.75 per barrel, according to Yonhap.
  • The Korean won was quoted at 1,513.2 won against the U.S. dollar, up 6.6 won from the previous session on Monday, as reported by Yonhap.
  • Samsung Electronics advanced 3.95 percent and SK hynix jumped 5.81 percent on Monday, according to Yonhap.
  • Hyundai Motor rose 6.59 percent, Hanwha Aerospace moved up 3.15 percent, and KB Financial climbed 7.88 percent on Monday, Yonhap reported.
  • Bond prices closed higher, with the yield on three-year Treasurys falling 2.7 basis points to 3.717 percent, as noted by Yonhap.
Analysis from Lee Kyoung-min at Daishin Securities, quoted by Yonhap, said: "Foreign investors drove gains in the local stock market as easing geopolitical tensions following the U.S.-Iran deal and falling oil prices strengthened risk appetite. The strong performance of U.S. tech stocks also supported sentiment in South Korea's semiconductor sector."