South Korean stocks rose nearly 3 percent Tuesday to inch toward the 6,000-point mark on hopes for renewed negotiations between Washington and Tehran. The local currency sharply gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 159.13 points, or 2.74 percent, to close at 5,967.75, after reaching as high as 6,026,52.
The index swerved over and under the 6,000-point mark, marking the first such move since March 3, when the index traded at 6,180.45, the first trading day after the United States and Israel carried out air strikes on Iran on Feb. 28.
Trading volume was moderate at 881.9 billion shares worth 26.7 trillion won (US$18 billion), with gainers beating losers 669 to 197.
Foreigners and institutions scooped up a net 830 billion won and 1.25 trillion won, respectively, while individuals sold a net 2.4 trillion won.
The U.S. military began a blockade of the Strait of Hormuz on Monday after a breakdown of weekend talks in Islamabad, Pakistan, between Washington and Tehran.
However, Donald Trump said Iran wants to reach a deal with the U.S., raising hopes that the two sides could return to negotiations.
“Investors anticipate a second round of peace talks between the U.S. and Iran after Trump’s comments,” said Kang Jin-hyuk, an analyst at Kyobo Securities. “The Wall Street Journal also reported that the two sides have exchanged detailed terms on uranium enrichment, raising further hopes for a deal.”
Tech and financial shares led the rally.
Tech giant Samsung Electronics rose 2.74 percent to 206,500 won and SK hynix jumped 6.06 percent to 1.1 million won ahead of its first-quarter earnings report next week.
Major banking group Hana Financial Group increased 0.67 percent to 120,800 won and Samsung Fire & Marine Insurance added 3.82 percent to 489,500 won.
Top carmaker Hyundai Motor advanced 2.72 percent to 491,500 won and major gamemaker NC climbed 3.97 percent to 248,500 won.
Leading mobile carrier SK Telecom gained 3.24 percent to 95,500 won and retail giant Shinsegae rose 1.02 percent to 346,500 won.
However, defense shares went south as industry leader Hanwha Aerospace fell 0.46 percent to 1.52 million won and LIG D&A, formerly LIG Nex1, declined 0.53 percent to 934,000 won.
The local currency was quoted at 1,481.2 won against the greenback as of 3:30 p.m., up 8.1 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 4.3 basis points to 3.339 percent, and the return on the benchmark five-year government bonds dropped 3.5 basis points to 3.519 percent.
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