Kospi opens higher on tech gains despite renewed Hormuz tensions

Shares opened higher Friday, led by gains in technology stocks despite renewed geopolitical tensions in the Middle East.

After opening 1.09 percent higher, the Kospi gained 79.21 points, or 1.26 percent, at 6,375.59 as of 9:15 a.m.

The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.

Overnight, U.S. stocks declined. The Dow Jones Industrial Average rose 0.85 percent, and the tech-heavy Nasdaq Composite climbed 0.06 percent amid a lack of clarity over a possible agreement between the United States and Iran to reopen the Strait of Hormuz.

Iran reportedly plans to deny U.S. and Israeli ships access to the strategic waterway and require compensation from countries it considers hostile before allowing them passage.

In Seoul, tech shares led the gains.

Market bellwether Samsung Electronics rose 2.49 percent, and its chipmaking rival SK hynix climbed 0.6 percent.

Leading steelmaker Posco Holdings gained 2.51 percent, and Korea Aerospace Industries advanced 4.6 percent.

Among decliners, top carmaker Hyundai Motor fell 1.94 percent, and state-run utility Korea Electric Power Corp. backtracked 1.81 percent.

The local currency strengthened 0.6 won from the previous session to trade at 1,424.70 against the greenback at 9:15 a.m.

Yonhap