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KOSPI, Kosdaq climb on hopes of Iran ceasefire
An electronic board at the dealing room of Hana Bank in Seoul displays the won-dollar exchange rate, the KOSPI and the Kosdaq, Wednesday. The KOSPI closed at 5,642.21, up 88.29 points, or 1.59 percent, from the previous session, while the Kosdaq rose 38.11 points, or 3.40 percent, to finish at 1,159.55. Yonhap
By Jun Ji-hye
Korean stocks rallied on Wednesday, with both the KOSPI and Kosdaq moving higher after reports that the United States had proposed a one-month ceasefire to Iran.
The won also strengthened against the U.S. dollar, with the exchange rate opening lower than the previous session, as hopes of easing geopolitical tensions revived risk appetite and supported the local currency.
According to the Korea Exchange, the benchmark KOSPI opened at 5,680.33, up 126.41 points, or 2.28 percent, and ended the session at 5,642.21, up 88.29 points, or 1.59 percent, from the previous session.
The secondary Kosdaq index followed suit, opening 11.87 points higher, or 1.06 percent, at 1,133.31 and extending its gains to close at 1,159.55, up 38.11 points, or 3.40 percent from the previous session.
In Seoul’s onshore foreign exchange market, the won opened at 1,493 won per dollar, up 2.2 won, before closing at 1,499.7 won per dollar, down 4.5 won from the previous session.
The currency had surged to 1,495.2 won per dollar on Tuesday, recovering from a 17-year low of 1,517.3 won in the previous session after U.S. President Donald Trump said he would delay a potential strike on Iran for five days.
In the United States, stocks ended lower overnight as persistent uncertainty over Middle East tensions involving Washington, Tel Aviv and Tehran weighed on investor sentiment.
The Dow Jones Industrial Average slipped 0.18 percent, while the S&P 500 and Nasdaq Composite fell 0.37 percent and 0.84 percent, respectively.
After the close, however, news of the U.S. ceasefire proposal lifted Nasdaq futures by nearly 1 percent in after-hours trading.
Global oil prices also retreated. CNBC reported that Brent crude, the global benchmark, dropped about 6 percent to $98.31 per barrel in Asian trading. U.S. West Texas Intermediate crude also declined about 5 percent to $87.65 per barrel. Brent had previously surged to $104.49 per barrel after Iran dismissed reports of negotiations with the United States.
Israel’s Channel 12, citing three unidentified sources, reported that the Donald Trump administration had put forward a one-month ceasefire plan accompanied by 15 conditions. The New York Times also reported that the terms were delivered via mediator Pakistan.
Still, many believe Iran is unlikely to accept the proposal, leaving uncertainty over the conflict unresolved.
“The emergence of a more defined exit framework is noteworthy," Han Ji-young, an analyst at Kiwoom Securities, said. "Maintaining at least a neutral or even overweight stance on domestic equities remains a reasonable strategy despite ongoing volatility tied to the conflict.”