Foreign investors return, KOSPI settles above 8100 amid peace hopes

South Korea's KOSPI index surged back to the 8100 level, closing at 8123.62, a significant 4.63% increase from the previous trading day. This rebound was largely fueled by the return of foreign investors to the market, who injected buying power amid growing optimism about a resolution to the Middle East conflict.

The market opened strongly, surpassing the 8200 mark shortly after trading began. The strong upward momentum triggered a buy-side car in the early session, pushing the index to a high of over 8430, an increase of more than 8.6% at one point. However, the rally faced resistance in the afternoon as profit-taking emerged, leading to a partial rollback of the day's gains.

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The Middle East situation quickly shifted from airstrike threats to an imminent agreement, leading to strong performance in post-war reconstruction and semiconductor stocks.

Analysts attributed the market's robust performance to a rapid shift in Middle East tensions, moving from threats of airstrikes to expectations of an imminent agreement. "The Middle East situation quickly shifted from airstrike threats to an imminent agreement, leading to strong performance in post-war reconstruction and semiconductor stocks," explained Kang Jin-hyuk, a researcher at Shinhan Investment & Securities.

This sentiment was echoed by statements from U.S. President Donald Trump, who claimed on April 11th (local time) to have reached a "great agreement" to end the war with Iran. He also indicated that a signing ceremony would take place in Europe within days, with Vice President JD Vance in attendance. Following these developments, international oil prices fell to around $80 per barrel, and U.S. Treasury yields also declined.

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We have reached a great agreement to end the war with Iran.