South Korea's KOSPI and KOSDAQ both closed up more than 2% on Thursday as expectations for further negotiations between the United States and Iran continued. The indices surged during the session as risk-on sentiment recovered amid easing Middle East tensions, combined with earnings expectations for leading sectors including semiconductors and biotech. Though the gains were partially pared in the afternoon, the bullish trend held.
The KOSPI closed at 6,091.39, up 123.64 points or 2.07% from the previous session, according to Korea Exchange data. The index touched an intraday high of 6,183.21 before trimming gains in late trading as institutions turned to selling. The KOSDAQ also finished higher, gaining 30.55 points or 2.72% to close at 1,152.43.
Foreign investors led the rally on the main bourse with net purchases of 552.3 billion won. Retail investors were net sellers of 935.5 billion won, while institutions recorded net sales of 22.6 billion won. On the KOSDAQ, foreigners and institutions were net buyers of 121.4 billion won and 156 billion won respectively, while retail investors sold a net 236 billion won.
Most large-cap stocks on the KOSPI showed strength. Samsung Electronics (005930.KS) rose 2.18% to close at 211,000 won, reclaiming the "210,000 won Samsung" level at the close for the first time in five trading days. SK hynix (000660.KS) gained 2.99% to finish at 1,136,000 won, holding above the "1.1 million won hynix" threshold. The chipmaker touched 1,166,000 won during the session, setting a new 52-week high for the second consecutive day.
Hyundai Motor (005380.KS) rose 3.36%, LG Energy Solution (373220.KS) gained 2.00%, SK Square (402340.KS) climbed 3.91%, Samsung Biologics (207940.KS) advanced 4.30%, and Doosan Enerbility (034020.KS) added 4.51%. However, Hanwha Aerospace (012450.KS) fell 0.92% and HD Hyundai Heavy Industries (329180.KS) declined 0.94%.
Pharmaceutical and biotech stocks stood out on the KOSDAQ. Alteogen (196170.KQ) closed up 5.67% at 373,000 won. Samchundang Pharmaceutical (000250.KQ) rose 6.73%, ABL Bio (298380.KQ) gained 5.07%, HLB (028300.KQ) jumped 8.77%, Kolon TissueGene (950160.KQ) surged 9.74%, and LegoChem Biosciences (141080.KQ) advanced 6.63%. Market cap leader EcoPro (086520.KQ) and EcoPro BM (247540.KQ) rose 2.57% and 2.38% respectively, while Rainbow Robotics (277810.KQ) gained 1.33%. EO Technics (039030.KQ) was the lone decliner, falling 1.97%.
Analysts attributed the broad market rally to easing geopolitical risks from the Middle East as hopes for continued U.S.-Iran negotiations persisted. The rally was further supported by U.S. March producer price index and core PPI figures coming in below expectations, easing inflation concerns, while foreign investors were net buyers in both spot and futures markets. By sector, semiconductors continued their earnings momentum following upward estimate revisions, construction stocks reflected Middle East reconstruction expectations, and pharmaceutical and biotech shares rallied on improved earnings outlooks, creating a differentiated market environment.
However, observers note that uncertainties remain, including Federal Reserve personnel changes, exchange rates, and potential further developments in Middle East conditions, suggesting stock-selective trading may intensify even if the upward trend continues. "The domestic market maintained its bullish trend on expectations for a second round of U.S.-Iran ceasefire negotiations," said Lee Kyung-min, a researcher at Daishin Securities. "Risk appetite that had been suppressed by Middle East uncertainty continues to expand, following yesterday's trend."
