Kospi opens sharply higher on hopes for U.S.-Iran deal, eased AI woes

Shares opened sharply higher on Wednesday, tracking overnight gains on Wall Street, following hopes for an interim agreement between the United States and Iran over the Strait of Hormuz, as well as eased concerns regarding AI profitability.

After opening 3.85 percent higher, the benchmark Kospi had risen 299.03 points, or 4.7 percent, to 6,657.98 as of 9:15 a.m.

The index rose 1.62 percent on Tuesday after plunging 5.12 percent the previous day.

Overnight, U.S. stocks advanced as investors bet that a possible agreement to reopen the crucial shipping route could extend the recent decline in oil prices and ease inflationary pressures.

Additionally, strong earnings reports from key firms, such as enterprise software company Palantir Technologies, helped ease concerns about major tech firms’ massive investment in the AI sector.

The Dow Jones Industrial Average rose 1.71 percent to 54,085.88, and the tech-heavy Nasdaq Composite climbed 2.59 percent to 26,584.99.

In Seoul, tech stocks led the gains.

Market bellwether Samsung Electronics jumped 4.38 percent, and its chipmaking rival SK hynix surged 7.29 percent.

Top carmaker Hyundai Motor rose 3.82 percent, and HD Korea Shipbuilding & Offshore Engineering climbed 2.94 percent.

Among decliners, tobacco firm KT&G fell 0.57 percent, and HYBE, the K-pop powerhouse behind global superstars BTS, declined 0.06 percent.

The won strengthened against the dollar to trade at 1,429.20 won against the dollar as of 9:15 a.m., up 0.2 won from the previous session’s close.

Yonhap