South Korean Stocks Surge Over 2.8% at Open, Topping 8,000 Points on U.S.-Iran Deal Hopes

Deep News08:20

South Korean equities opened sharply higher on Tuesday, surpassing the 8,000-point milestone to set a new record, as market sentiment was buoyed by growing expectations for a U.S.-Iran agreement to reopen the Strait of Hormuz.

The Korea Composite Stock Price Index (KOSPI) opened up 223.2 points, or 2.84 percent, at 8,070.91.

Overnight, U.S. President Donald Trump stated that peace talks with Iran were progressing "well," but cautioned that new attacks would be launched should the negotiations fail.

Optimism over a potential end to the conflict drove a sharp decline in oil prices. Brent crude futures fell 7 percent to $96 per barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped 6.5 percent to $90 per barrel.

The South Korean stock market was closed on Monday for the Buddha's Birthday holiday.

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