Seoul shares open sharply higher on U.S. tech rally, falling oil prices

Korean stocks opened sharply higher on Tuesday, buoyed by a rally on U.S. stock markets driven by optimism surrounding potential diplomatic negotiations to conclude the U.S.-Iran conflict. This optimism resulted in a decline in oil prices, contributing to a sense of stability as investors grappled with inflation concerns.

The Korea Composite Stock Price Index (KOSPI) surged 275.50 points, or 5.49 percent, to reach 5,294.35 by 9:15 a.m. In response to the sharp increase, the Korea Exchange activated a buy-side sidecar for the main bourse at 9:06 a.m., temporarily halting program trading for KOSPI-listed shares for a span of five minutes.

The surge in U.S. stocks was attributed to a reduction in uncertainty in the Middle East following President Donald Trump's statement that he was not prepared to resume military operations. Meanwhile, a drop in oil prices helped alleviate inflation fears, further bolstering investor confidence.

Within the U.S., the Dow Jones Industrial Average rose by 2.15 percent, while the S&P 500 gained 2.35 percent. The tech-heavy Nasdaq Composite also experienced a positive shift, climbing 2.74 percent. However, Nvidia shares experienced a significant drop of 4.2 percent. The PHLX semiconductor index saw a notable increase of 6.85 percent.

Major Korean shares also witnessed substantial gains across the board. Samsung Electronics, the market bellwether, surged 5.85 percent, and the semiconductor sector showed strong performance.