The Korean stock market soared on easing Middle East risk expectations, with the KOSPI index on the verge of reclaiming the 5,900 level.
As of 1:34 p.m. on the 8th, the KOSPI stood at 5,891.07, up 396.29 points (7.21%) from the previous trading day, according to the Korea Exchange (KRX).
Retail investors posted a net sell-off of approximately 4.6 trillion won ($3.4 billion), marking a record-level selling spree. Foreign and institutional investors, meanwhile, led the rally with net purchases of 1.89 trillion won and 2.53 trillion won, respectively.
Large-cap stocks rallied across the board. Samsung Electronics (005930.KS) climbed more than 8% to reclaim the 210,000 won level, while SK hynix (000660.KS) surged 14.19% to break through the 1.04 million won level.
SK Square (058540.KS) also posted a double-digit gain of 16.43%, while automakers Hyundai Motor (005380.KS) and Kia (000270.KS) rose 6.55% and 4.91%, respectively. Doosan Enerbility (034020.KS) also gained 6.11%.
On the other hand, LG Energy Solution (373220.KS) fell 0.98% and Hanwha Aerospace (012450.KS) dropped 4.36%.
The rally was triggered by news of a two-week ceasefire agreement between the United States and Iran. Investor sentiment recovered swiftly after U.S. President Donald Trump declared a halt to attacks on the condition that the Strait of Hormuz be opened.
Sidecar mechanisms were triggered in rapid succession during the early session surge. Program buy orders were temporarily suspended on the KOSPI market at 9:06 a.m. and on the KOSDAQ market at 9:13 a.m. KOSPI 200 futures had surged more than 6% and KOSDAQ 150 futures had jumped over 6%, meeting the trigger requirements.
"Negative factors have already been largely priced in, while the market is reacting sensitively to positive news," said Kang Jin-hyuk, a researcher at Shinhan Investment Corp. "The two-week ceasefire agreement and the opening of the Strait of Hormuz converged, drawing sidelined buyers into the market all at once."