Seoul Stocks Rebound as Tensions Ease, Tech Shares Lead Gains
South Korean stocks rebounded on Monday after a volatile session on Friday, finishing nearly 1% higher amid eased tensions in the Middle East. The Korea Composite Stock Price Index added 65.13 points to close at 6,755.75.
The recovery was driven by gains in tech shares, with Samsung Electronics up 1.8% and SK hynix jumping 3.24%. Naver surged 8.43% after announcing a partnership with Nvidia to build a new data center. Hanmi Semiconductor added 2.25%, while Hyundai Motor advanced 0.5% and LG Energy Solution climbed 1.06%.
However, oil refinery and defense shares declined on the news that Middle East hostilities had eased. SK Innovation fell 10.3% to 116,700 won, and Hanwha Aerospace sank 8.17%. The Korean won was quoted at 1,468.5 won against the US dollar.
Analysts attributed the gains to a combination of factors, including the pause in US-Iran hostilities and a series of investment agreements worth $950 billion announced over the weekend in San Francisco. Lee Kyung-min from Daishin Securities noted that 'solid AI investment and collaborations with global tech companies offer upside pressure on the index.'