KOSPI Jumps 2.21% on Iran Peace Hopes, TSMC Earnings
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- KOSPI closed up 134.66 points or 2.21% at 6,226.05, its highest level since February 27, though still roughly 80 points below the February 26 all-time closing high of 6,307.27.
- TSMC posted a 58% jump in first-quarter profit to record levels that beat market forecasts, triggering a chip rally that pushed Samsung Electronics up 3.08% to its highest since February 26 and SK Hynix up 1.67% to an all-time high.
- US-Iran peace optimism was a parallel driver, with Daishin Securities analyst Lee Kyoung-min saying the market sees a likely scenario that geopolitical uncertainty around the Iran war will be eased or resolved; the US expressed optimism on Wednesday about a deal while warning of economic pressure on Tehran.
- Hyundai Motor and Kia Corp surged 5.12% and 4.22% respectively, and LG Energy Solution climbed 1.96% — confirming the rally extended well beyond semiconductors.
- Foreign investors were net buyers of 464.4 billion won ($315.43 million), and breadth was overwhelming: 657 of 905 traded issues advanced versus 207 declining.
- The Korean won strengthened 0.16% to 1,473.1 per dollar on the onshore settlement platform, while three-year and 10-year treasury bond yields ticked up 1 and 2.5 basis points respectively.
Why it matters: Foreigners deployed 464.4 billion won ($315.43M) into Korean equities as the KOSPI nearly fully recovered from the Iran war selloff, and breadth was decisive — 657 of 905 issues rose, with Samsung hitting a multi-month high, SK Hynix an all-time high, and Hyundai and Kia ripping 4-5%. The peace premium is being priced across the entire market, not just chips, and the index is now within 1.3% of its all-time high set the day before the war broke out.
