With U.S. President Donald Trump signaling he will soon end the war with Iran and international oil prices falling, the domestic stock market, which had surged the previous day, opened sharply higher on the 11th.
The KOSPI opened at 5,658.72, up 126.13 points (2.28%), reclaiming the 5,600 level. The early session is seeing gains of more than 2% continue.
In the cash market, foreigners are net sellers of about 100 billion won, while in KOSPI 200 futures they are net buyers of about 500 contracts. Individuals are net buyers of 100 billion won in the cash market.
In global investment markets, a cautious outlook is emerging that the Iran war may end soon. After the United States and Israel struck Iran and international oil prices spiked, raising inflation fears and burdening the U.S. economy, expectations grew that "TACO" (Trump Always Chickens Out) would repeat.
The White House on the 10th said, "If President Donald Trump judges that the military operation's objectives have been fully achieved, it will end." Trump also likened the operation to a "short journey," hinting at the possibility of an early end.
Hwang San-hae, an LS Securities researcher, said, "The greater the inflation pressure from the oil price surge and the budget pressure from war expenses become visible, the higher the likelihood of TACO appearing."
International oil, which had topped $100 per Barrel, is easing as it falls. On news that major countries are considering releasing strategic reserves, West Texas Intermediate (WTI) fell to about $86 per barrel. In the U.S. stock market, investors took a wait-and-see approach. U.S. stock indexes were mixed around the flat line.
As risk appetite revives, investment funds are flowing into the domestic stock market. On this day, the top market-cap stocks on the Korea Exchange are all rising. Not only semiconductors, shipbuilders, and financials but also defense stocks are strong. Hanwha Ocean is soaring more than 10%, and shares that had recently jumped, such as Mirae Asset Securities and SeAH Besteel Holdings, are also gaining.
The KOSDAQ is also rising. The index opened at 1,155.48, up 17.80 points (1.56%), and early gains of 1.5% to 1.8% are continuing.