Seoul Stocks Gain Amid Strait of Hormuz Developments

South Korean Stocks Surge Nearly 2.5% as Hopes Rise Over Strait of Hormuz Reopening​

KOSPI Rebounds Strongly on Positive Geopolitical Signals​

Seoul, April 3: South Korean equities opened sharply higher on Friday, with the benchmark Korea Composite Stock Price Index (KOSPI) climbing nearly 2.5 percent in early trade. The rally comes amid reports that Iran is working with Oman on a protocol to monitor traffic through the Strait of Hormuz, raising expectations of a potential reopening of the key global shipping route.

The KOSPI rose 128.99 points, or 2.46 percent, to reach 5,363.0, according to Yonhap news agency. The index had opened with a stronger gain of 2.7 percent, recovering from a steep decline in the previous session, and continued to hold firm on the back of sustained institutional buying.

Middle East Developments Drive Market Sentiment​

Investor sentiment remained sensitive to developments in the Middle East. Concerns over further escalation persist after U.S. President Donald Trump stated in a prime-time address on Wednesday that the United States would "hit Iran extremely hard over the next two to three weeks." However, no clear timeline was provided regarding the resolution of the conflict that began in late February.

At the same time, Iran’s Deputy Foreign Minister Kazem Gharibabadi indicated that Tehran is drafting a monitoring protocol with Oman for vessel movement through the Strait of Hormuz. This development has raised cautious optimism about easing disruptions in one of the world’s most critical oil transit routes, which has remained effectively closed since the conflict began.

Tech and Shipbuilding Stocks Lead Gains​

In the Seoul market, large-cap technology stocks led the rally.

Samsung Electronics advanced 3.28 percent, while SK Hynix surged 5.18 percent, supporting the broader index gains.

Automobile stocks also posted modest gains, with Hyundai Motor rising 1.29 percent and Kia edging up 0.2 percent.

Defense and energy-linked stocks saw upward movement as well. Hanwha Aerospace gained 2.05 percent, SK Square rose 1.06 percent, and Doosan Enerbility climbed 3.42 percent.

Shipbuilding stocks recorded strong gains, reflecting optimism tied to potential reopening of shipping routes. HD Hyundai Heavy Industries surged 9 percent, while Hanwha Ocean rose 5.62 percent.

Select Stocks Lag Despite Broader Rally​

Despite the overall market strength, some heavyweight stocks declined.

LG Energy Solution slipped 0.87 percent, while Samsung Biologics fell 1.77 percent. Financial major KB Financial also edged lower, down 0.07 percent.

Outlook Remains Tied to Geopolitical Developments​

While South Korean markets are witnessing a strong rebound, investor focus remains firmly on geopolitical developments and their impact on global trade routes and energy flows. The progress of negotiations around the Strait of Hormuz is likely to remain a key driver of market direction in the near term.