South Korean stocks experienced a significant rally on Friday, with market risk appetite improving after U.S. President Donald Trump indicated that the United States and Iran were close to reaching an agreement.
The Kospi index surged more than 8% in early trading, led by gains in semiconductor stocks.
Friday's sharp advance once again highlighted the wild volatility of South Korea's $4.3 trillion stock market. Due to a surge in stock index futures, the Korea Exchange temporarily halted programmatic buy orders for the Kospi. This followed a move by Trump to suddenly cancel a planned military strike against Iran, which had previously propelled U.S. stocks and broader risk assets higher.
Both Samsung Electronics Co Ltd and SK Hynix Inc jumped more than 9%, as investors flocked back to stocks seen at the center of the artificial intelligence boom.
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