Seoul stocks hit record highs above 9,100, driven by semiconductor gains and easing Middle East tensions after US–Iran talks, despite mixed sector performance.
South Korean equities close at fresh all-time high
Seoul
South Korean equities closed at a fresh all-time high on Monday, driven by strong gains in semiconductor stocks and easing geopolitical concerns following progress in US–Iran talks aimed at resolving tensions in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 62.13 points, or 0.69 per cent, to close at 9,114.55, after briefly touching an intraday high of 9,253.00. Despite opening lower, the index recovered strongly as chip-related buying lifted overall sentiment.
Investor participation remained active, with trade volume reaching 377.2 million shares worth 41.4 trillion won (about US$26.9 billion). Market breadth, however, remained negative, with declining stocks outnumbering gainers 739 to 148.
Foreign investors were net sellers, offloading 2.55 trillion won worth of shares, while domestic retail and institutional investors provided support by buying 2.15 trillion won and 308.4 billion won respectively.
Sentiment was buoyed by diplomatic developments, as Washington and Tehran concluded initial negotiations and agreed on a roadmap for a potential final deal within 60 days, according to mediating parties Qatar and Pakistan. The talks are seen as a step toward reducing geopolitical risk in the region.
However, analysts cautioned that earlier tensions, including threats related to the Strait of Hormuz and rhetoric from US leadership, had contributed to volatility in global markets before the recent diplomatic thaw.
The rally was led by semiconductor stocks. SK hynix surged 5.61 per cent, outperforming even Samsung Electronics in market capitalization for the first time. SK Square also climbed sharply, while Hanmi Semiconductor gained on expectations of strong chip equipment demand.
Other defence-related stocks such as Hanwha Aerospace and Korea Aerospace Industries also saw modest gains.
In contrast, several major blue-chip stocks declined. Samsung Electronics slipped slightly, while Hyundai Motor fell more than 5 per cent. Battery maker LG Energy Solution also weakened, reflecting profit-taking in certain high-growth sectors.
Financial and pharmaceutical stocks were among the biggest laggards, with Samsung Life Insurance and Samsung Biologics posting notable declines.
The South Korean won weakened to 1,537 per US dollar, down 10 won from the previous session, while government bond yields edged higher, indicating cautious sentiment in the fixed-income market.
Overall, the rally underscored strong investor interest in semiconductor-driven growth, even as broader sector performance remained mixed amid global geopolitical uncertainty and shifting capital flows.