Seoul shares open sharply higher on tech gains despite heightened Middle East tensions
The won-dollar exchange rate and the KOSPI index can be seen on a screen at a dealing room in Hana Bank, Seoul, Monday. Yonhap
Korean stocks started sharply higher Monday, driven by gains in tech shares, despite heightened military tensions in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 222.40 points, or 3.33 percent, to 6,909.61 as of 9:15 a.m.
Overnight, military attacks intensified between the United States and Iran.
Tehran said it targeted three oil tankers using an unauthorized route through the Strait of Hormuz, as well as several U.S.-linked vessels, in retaliation for U.S. attacks on Iranian tankers.
On Friday, U.S. stocks closed lower on strong job data, which raised the possibility of rate hikes by the Federal Reserve. The Dow Jones Industrial Average fell 0.51 percent, and the Nasdaq Composite lost 0.29 percent.
However, the PHLX semiconductor index rose 3.38 percent on the release of OpenAI's new GPT-6 Astra, which is expected to boost demand for memory chips.
In Seoul, tech shares led the strong opening.
Chip giant Samsung Electronics jumped 4.4 percent, and its rival SK hynix soared 5.89 percent.
Hanmi Semiconductor, a leading chip manufacturing equipment firm, vaulted 5.22 percent, and LG Electronics surged 8.44 percent.
Top carmaker Hyundai Motor advanced 1.96 percent and defense giant Hanwha Aerospace climbed 1.04 percent.
The Korean won was trading at 1,344.8 won against the U.S. dollar as of 9:15 a.m., up 5 won from the previous stock trading session.