Seoul stocks surge over 5% on US-Iran peace deal, KOSPI tops 8,500

SEOUL, June 15 (Yonhap) -- Seoul stocks closed sharply higher Monday to extend their winning streak to a third day, landing above the 8,500-point mark on the back of an agreement between the United States and Iran to end their monthslong war. The Korean won rose sharply.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 422.36 points, or 5.2 percent, to 8,545.98, after rising as high as 8,603.48.

"The KOSPI broke the 8,500-point mark as the breakthrough in peace talks opened a risk-on rally," said Lee Kyoung-min, an analyst from Daishin Securities.

Foreign investors were net buyers, adding upward pressure to the stock market, along with institutional investors, the analyst added.

They net purchased a combined 1.53 trillion won (US$991.9 million), while retail investors net sold 1.49 trillion won.

The country's main bourse operator issued a sidecar shortly after the market opened, marking the 14th time for the Korea Exchange to issue such a measure.

On Sunday (local time), U.S. President Donald Trump said he had reached an agreement with Iran to end their war, and that he will authorize the toll-free opening and the removal of the naval blockade in the Strait of Hormuz.

An official signing ceremony of the agreement is scheduled to take place in Switzerland on Friday.

Trade volume was moderate at 510.3 million shares worth 38.6 trillion won. Winners outnumbered losers 674 to 206.

Most market heavyweights closed higher.

Market top-cap Samsung Electronics rose 4.5 percent to 337,000 won, while its chipmaking rival SK hynix advanced 6.42 percent to 2,288,000 won.

Top carmaker Hyundai Motor jumped 6.59 percent to 647,000 won, battery maker LG Energy Solution climbed 5.12 percent to 420,500 won, and major financial group KB Financial increased 5.21 percent to 169,600 won.

Logistics sector was also bullish, as investors anticipated cost burden to ease once the Strait of Hormuz is reopened.

Shipper HMM closed up 6.23 percent to 21,300 won and Korean Airlines vaulted 12.78 percent to 30,000 won.

The Korean won was quoted at 1,511.1 won against the U.S. dollar as of 3:30 p.m., up 8.7 won from the previous session.