SEOUL: South Korea's benchmark KOSPI index closed up 9.63% after surging as much as 12.2% on Thursday, swiftly erasing most of its worst-ever daily drop from a day earlier, buoyed by hopes for progress in U.S.-Iran diplomacy.
The benchmark KOSPI closed up 490.36 points, or 9.63%, at 5,583.90 as of 0630 GMT, regaining most of Wednesday's 12.06% loss.
Among index heavyweights, chipmaker Samsung Electronics rose 11.27%, while peer SK Hynix gained 10.84%. Battery maker LG Energy Solution climbed 6.91%.
The rebound followed a New York Times report on Wednesday suggesting Iran's Ministry of Intelligence had signalled a willingness to engage in talks with the U.S. Central Intelligence Agency to seek an end to the war, citing officials briefed on the matter.
The share index climbed to 5,685.47 at the open,
"Oil has somewhat stabilised overnight and there's definitely more confidence among foreign investors about a potential resolution. The rebound is strong especially for chips," said Seo Sang-young, an analyst at Mirae Asset Securities Co.
Market sentiment was bolstered as global oil prices stabilised and Wall Street showed resilience overnight despite the ongoing Middle East conflict.
Hyundai Motor and sister automaker Kia Corp were up 9.38% and up 6.19%, respectively. Steelmaker POSCO Holdings added 7.78%, and drugmaker Samsung BioLogics rose 8.64%.
The Korea Exchange also activated a sidecar trading curb on both the benchmark KOSPI and junior KOSDAQ index, briefly halting programme trading for five minutes after stocks surged.
The won was quoted at 1,468.1 per dollar on the onshore settlement platform, 0.35% lower than its previous close at 1,462.9.
President Lee Jae Myung affirmed the government's readiness to deploy market-stabilising measures if needed.
"We must proactively respond to increased financial market volatility. We should accelerate policy efforts and swiftly implement and manage the 100 trillion won market stabilisation programme," Lee said at a policy meeting. He was referring to the government's emergency fund that can be deployed in times of major market declines.
Among index heavyweights, chipmaker Samsung Electronics rose 14.98%, while peer SK Hynix gained 16.02%. Battery maker LG Energy Solution climbed 7.90%.
Out of a total 926 traded companies, 902 advanced and 21 declined. Foreigners were net sellers of shares worth 144.5 billion won. - Reuters
