South Korea’s benchmark KOSPI index closed at 8,123.62 on Friday, gaining 359.67 points, or 4.63 percent. The index rose as high as 8,434.40 during the session before trimming gains on profit-taking ahead of the closing bell.
Trade volume was heavy at 490.3 million shares worth 51.1 trillion won (US$33.6 billion). Advancing stocks outnumbered decliners 753 to 144.
The rally followed President Trump’s statement Thursday on US time that he had reached a “great settlement” that would resolve the monthslong conflict with Iran and that the deal could be signed as early as over the weekend, possibly in Europe. Media outlet Axios reported that four US Air Force C-17 planes departed for Europe on Thursday, moving equipment for possible travel by Vice President JD Vance, raising the possibility a signing ceremony could take place in Geneva, Switzerland.
“Market sentiment improved as foreign investors shifted to net buying after a 25-session selling streak, on anticipations for peace negotiations,” said Lee Kyoung-min, an analyst from Daishin Securities.
Lee added that the rise was limited amid reports that global banks are curbing hedge funds’ leveraged bets on the country’s two semiconductor heavyweights, Samsung Electronics and SK hynix.
Foreign and institutional investors net purchased a combined 4.4 trillion won. Retail investors net sold 4.3 trillion won.
Market top-cap Samsung Electronics rose 7.86 percent to 322,500 won. Rival chipmaker SK hynix gained 2.33 percent to 2,150,000 won.
Semiconductor equipment maker Hanmi Semiconductor vaulted 24.05 percent to 361,000 won after the company disclosed in a regulatory filing that it is seeking to invest in SpaceX, Elon Musk’s space company that was set to make its Nasdaq debut on Friday.
Shipbuilders also rose as investors sought bargains. Hanwha Ocean added 7.85 percent to 112,700 won and HD Hyundai Heavy Industries edged up 0.62 percent to 650,000 won.
Portal operator Naver jumped 10.27 percent to 247,000 won, financial firm KB Financial climbed 6.4 percent to 161,200 won, and top automaker Hyundai Motor added 1.68 percent to 607,000 won.
The Korean won strengthened, quoted at 1,519.8 won against the US dollar as of 3:30 p.m., up 9.1 won from the previous session’s close.
Bond prices rose, sending yields lower. The yield on three-year Treasurys fell 9.6 basis points to 3.808 percent, and the return on benchmark five-year government bonds declined 10.9 basis points to 3.971 percent.