Seoul Stocks Trade Higher on U.S.-Iran Deal to Reopen Strait of Hormuz

SEOUL, June 16 (Yonhap) -- Seoul stocks were trading higher late Tuesday morning, as investor sentiment was lifted following a U.S.-Iran agreement to reopen the Strait of Hormuz.

The benchmark Korea Composite Stock Price Index (KOSPI) was up 145.52 points, or 1.7 percent, to 8,691.5 as of 11:20 a.m.

Overnight, U.S. stocks rallied after U.S. President Donald Trump said a preliminary agreement to end the conflict with Iran had already been signed and the Strait of Hormuz would be "completely opened" Friday.

The S&P 500 rose 1.7 percent, and the tech-heavy Nasdaq 100 gained 3.1 percent, while the Dow Jones Industrial Average reached a record high.

Oil prices retreated. Brent crude fell 4.76 percent to US$83.17 per barrel, while U.S. WTI dropped 4.87 percent to $80.75 per barrel, easing concerns over inflation.

Market top-cap Samsung Electronics edged up 0.89 percent, while industry rival SK hynix rose 2.91 percent.

Defense firm LIG D&A jumped 18.82 percent after announcing a partnership with German defense firm Rheinmetall to cooperate in air defense systems.

Daewoo Engineering & Construction surged 22.71 percent on expectations of new business opportunities in the Middle East amid eased geopolitical tensions.

The Korean won was quoted at 1,513.9 won against the U.S. dollar, down 2.8 won from the previous session.