KOSPI settles above 6,000 as hope grows for second US-Iran truce talks

Electronic boards display KOSPI, Kosdaq values and the won-dollar exchange rate at Hana Bank’s headquarters in Seoul, Wednesday. KOSPI closed at 6,091.39, up 123.64 points, or 2.07 percent, while Kosdaq ended at 1,152.43, up 30.55 points, or 2.72 percent. Yonhap

KOSPI extended its gains for a second consecutive session, trading above the 6,100 level Wednesday amid expectations that a second round of ceasefire negotiations between the United States and Iran will soon commence.

Kosdaq and the Korean won also posted gains for a second straight day.

The country’s benchmark index surged 173.85 points, or 2.91 percent, from the previous session to open at 6,141.60, and ultimately finished at 6,091.39, up 123.64 points, or 2.07 percent.

In the previous trading day, the index had advanced 2.74 percent to close at 5,967.75, briefly touching 6,026.52 during intraday trading and reclaiming the 6,000 level for the first time since March 3.

The secondary Kosdaq index opened at 1,140.62, up 18.74 points, or 1.67 percent from the prior session, and continued to build on its gains during the session before ending at 1,152.43, up 30.55 points, or 2.72 percent.

In the Seoul foreign exchange market, the won began onshore trading at 1,471 per dollar, strengthening by 10.2 won from the previous close, before finishing the session at 1,474.2 per dollar.

The won had closed Monday at 1,489.3, a decline of 6.8 won from the previous session, before rebounding Tuesday with an 8.1 won gain.

After U.S. President Donald Trump signaled that direct negotiations between Washington and Tehran could restart within two days in Pakistan, investor sentiment improved further on growing expectations of diplomatic progress and a potential de-escalation of tensions.

In a phone interview with the New York Post, Trump said that “something could be happening over the next two days,” and directed a remark at a reporter in Islamabad, Pakistan, saying, “You should stay there, really.”

Speculation about imminent developments also put downward pressure on crude oil prices. Brent crude for June delivery settled at $94.79 per barrel, dropping 4.6 percent from the previous session, while West Texas Intermediate crude for May delivery settled at $91.28 per barrel, down 7.9 percent.

Korean brokerage houses assess that KOSPI still has significant upside potential, pointing to its relatively low valuation and persistent discount versus global markets as key supporting factors.

In addition, some analysts say that improving semiconductor industry conditions, together with valuation expansion driven by corporate governance reforms, are making a rise toward the 7,500 level increasingly plausible.

“KOSPI’s 12-month forward price-to-book ratio stands at 1.4 times, which is sharply below the global average of 3.1 times. This gap is expected to narrow as valuation multiples expand, supported by government-led capital market initiatives, including governance reforms under revisions to the Commercial Act,” said Kim Dong-won, a senior analyst at KB Securities.

“The market is entering a semiconductor-led earnings recovery cycle, which could enhance Korea’s appeal to global investors. The year-end KOSPI target of 7,500 points is now within reach,” he said.