KOSPI Closes Higher Despite UAE Oil Facility Attack Erasing Early Gains

The KOSPI gave back a significant portion of its gains amid surging international oil prices, closing in the 5,640 range. The market, which had rallied early on expectations of falling oil prices, saw heightened volatility as Middle East risks resurfaced.

On the 17th, the KOSPI closed at 5,640.48, up 1.63% from the previous trading day. The index surged more than 3% in early trading to break through the 5,700 level but trimmed gains in the afternoon session.

The KOSPI rose early in the session after Iran allowed partial crude oil shipments through the Strait of Hormuz the previous day, causing international oil prices to plunge. Investor sentiment improved as West Texas Intermediate crude prices fell more than 5%.

However, the mood shifted dramatically near market close. News emerged that a drone attack had struck an oil industrial complex at the Port of Fujairah in the United Arab Emirates, sparking a fire and sending oil prices surging again. WTI prices reversed course, rising more than 4% intraday, which prompted the market to pare its gains.

Major semiconductor stocks also gave back most of their intraday gains. Samsung Electronics showed early strength after Nvidia CEO Jensen Huang mentioned their partnership at Nvidia's artificial intelligence conference GTC, but the stock ultimately trimmed its advance. Samsung Electronics closed at 193,900 won, up 2.76%.

SK Hynix also reclaimed the 1 million won level early in the session, restoring its "Million Hynix" status, but failed to maintain momentum. SK Hynix surrendered its intraday gains and closed at 970,000 won, down 0.41%.

The KOSDAQ index turned lower during trading and closed weak. The KOSDAQ finished at 1,136.94, down 1.35 points or 0.12% from the previous trading day.