S. Korean stocks open sharply higher on U.S.-Iran deal, triggering buy-side sidecar

Alsharq Tribune-Otaify 

South Korean stocks opened sharply higher Monday after the United States and Iran reached an agreement to end their months-long conflict in the Middle East and reopen the Strait of Hormuz, easing concerns over global energy supplies.

The benchmark Korea Composite Stock Price Index (KOSPI) surged 402.5 points, or 4.95 percent, to 8,526.12 in the first minutes of trading. As of 9:07 a.m. local time, KOSPI jumped 327.7 points, or 4.03 percent, to 8,451.32.

The Korea Exchange (KRX) triggered a buy-side sidecar shortly after the market opened, suspending program buying orders for KOSPI-listed shares for five minutes.

Investor sentiment improved after Pakistan announced Sunday local time that Washington and Tehran had agreed to end the conflict and restore navigation through the Strait of Hormuz, a vital shipping route for global oil supplies that had been effectively closed for months. A formal signing ceremony is expected to take place Friday.

The breakthrough helped ease fears of prolonged disruptions to global energy markets and supported risk appetite across regional equities.