On the 26th, the KOSPI jumped at the open and again broke above 8,000 points intraday. The move was attributed to improved risk appetite as expectations grew for an end to the war between the United States and Iran. With foreigners and institutions net buying together, most large-cap stocks by market capitalization are gaining.
The KOSPI opened at 8,070.91, up 223.20 points (2.84%) from the previous session. It briefly topped 8,090 early in the session. With foreigners and institutions net buying in tandem, gains of around 2.5% are continuing in early trading.
U.S. markets were closed the previous day for Memorial Day, but stocks in Asia, including Japan, Taiwan and China, rose across the board. Analysis gained traction that the Strait of Hormuz is likely to be opened as the United States and Iran continue peace talks.
The United States and Iran extended the truce by 60 days and are discussing signing a memorandum of understanding (MOU) to reach a final agreement during this period. In particular, Iran is reportedly considering the opening of the Strait of Hormuz and the handling of highly enriched uranium in a forward-looking direction.
U.S. President Donald Trump wrote on his Truth Social account, "Iran's enriched uranium will be turned over to the United States and disposed of, or, preferably, disposed of locally (in Iran) in cooperation and coordination with Iran, or disposed of at another appropriate location in the presence of the U.S. Nuclear Regulatory Commission or an equivalent body." Trump also said, "Talks with Iran are going smoothly," adding, "If the deal falls through again, attacks on Iran will intensify even more."
Notably, international oil prices and U.S. Government Bonds yields, which had weighed on the market, fell. Thanks to this, Japan's Nikkei 225 topped 65,000 points for the first time ever. Tech stocks were particularly strong. As global funds flowed into Asian equities, Korea's market, which was closed the previous day, is also rising.
Among top-cap stocks on the main board, most are advancing, with Samsung Electro-Mechanics posting especially large gains. It has surged nearly 10% early and is again hitting an all-time high. LG Innotek is also soaring. Funds that had been concentrated in Samsung Electronics and SK hynix are flowing into these relatively less-risen names.
The KOSDAQ is also strong. The KOSDAQ opened at 1,189.28, up 28.15 points (2.42%), and is rising more than 3% as early gains widen. It briefly reclaimed 1,200 points early in the session.
Investor interest in the KOSDAQ is growing with the launch of the Public Growth Fund, designed for broad public participation. Bio and secondary battery sectors, which have large weights on the KOSDAQ, are rising across the board.