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Kospi surges past 3,100 on Israel-Iran cease-fire news

Published: 24 Jun. 2025, 11:50 Updated: 24 Jun. 2025, 16:15

A screen in Hana Bank's trading room shows the Kospi and won-dollar exchange rate in central Seoul on June 24. [NEWS1]

The Kospi surpassed the 3,100 mark during intraday trading on Tuesday, as investors welcomed news of a cease-fire agreement between Israel and Iran.

As of 12:30 p.m., the Kospi was trading at 3,101.07, up 86.60 points, or 2.87 percent, from the previous session. The index had opened at 3,064.18, up 1.65 percent, and continued to rise throughout the morning.

The Kosdaq also gained ground. At the same time, it was up 14.24 points, or 1.81 percent, to 799.03, after opening at 796.06, up 1.44 percent.

On Monday, U.S. President Donald Trump said on Truth Social, “It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE,” adding, “During each CEASEFIRE, the other side will remain PEACEFUL and RESPECTFUL.”

The announcement followed Iran’s missile strikes on U.S. military bases in Qatar and Iraq. Iranian Foreign Minister Abbas Araghchi said the retaliation was in response to recent aggression, adding that Tehran did not wish for further escalation. Israeli Prime Minister Benjamin Netanyahu also said in a call with Trump that Israel would agree to a cease-fire if Iran halted its attacks.

Improved investor sentiment following the easing of Middle East risks drove strong buying in leading semiconductor stocks.

As of 9:24 a.m., SK hynix was trading at 278,000 won ($203), up 7.13 percent. The stock surged 4.05 percent at the open and continued its rally, surpassing the 270,000-won threshold for the first time and approaching 280,000 won — a record high. Samsung Electronics was also up 3.97 percent at 60,300 won.

Meanwhile, energy, shipping and defense stocks fell sharply.

At 9:20 a.m., JoongAng Enervis was trading at 17,670 won, down 27.13 percent. The oil refiner had surged 24 percent in the previous session on concerns over Middle East tensions but gave up those gains in a single day. Other refiners also slumped, including Hunggu Oil, down 26.33 percent, and S-Oil, down 7.03 percent.

Shipping stocks, which had risen on expectations of higher freight costs due to potential disruptions in the Strait of Hormuz, also fell. HMM was down 4.25 percent, Korea Line Corporation 5.84 percent and Heung-A Shipping 20.18 percent.

Defense contractors also dropped. Poongsan Holdings declined 13.67 percent, LIG Nex1 13.17 percent, Poongsan 12.50 percent and Victek 9.02 percent. Hyundai Rotem was down 7.43 percent, Korea Aerospace Industries 5.26 percent and Hanwha Systems 4.98 percent.

With the Middle East conflict appearing to de-escalate, the won opened stronger against the greenback on the Seoul foreign exchange market at 1,369 won per dollar, up 15.3 won from the previous session’s closing price of 1,384.3 won.

Japan’s Tokyo stock market also gained. The Nikkei 225 opened at 38,779.18, up 425.09 points, or 1.10 percent, as buying sentiment led the session.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHO MUN-GYU [[email protected]]