Seoul stocks surge 4.97% at open as Trump hints at meeting with Kim Jong-un

The Seoul stock market experienced a significant rally at Thursday's opening, with the benchmark Kospi index jumping 4.95%. The surge was largely driven by technology stocks, spurred by statements from U.S. President Donald Trump indicating his intention to meet with North Korean leader Kim Jong-un later this year.

The Kospi index gained 321.6 points to reach 6,792.77 shortly after trading began. The Kosdaq index, which comprises mid-cap and technology companies, also saw a substantial increase of 2.02%, adding 16.65 points to reach 841.11.

Korea Exchange (KRX), the operator of the South Korean stock market, activated a 'buy sidecar' mechanism approximately one hour after the opening. This measure temporarily suspends programmed trading for five minutes when the Kospi 200 futures index rises more than 5% within a minute, highlighting the market's rapid upward movement.

The rally follows recent developments, including Trump's suggestion of a potential meeting with Kim and the U.S. decision to scale back its summer military exercises with Seoul, a move that Pyongyang has frequently criticized. However, North Korea later expressed skepticism regarding the reported contacts between Trump and Kim.

Major technology firms saw considerable gains. Samsung Electronics, the local semiconductor giant, climbed 7.17%, while its competitor SK Hynix advanced by 10.47%. SK Square, a technology investment firm, rose 6.47%, and Naver, a prominent tech company, grew by 6%. In the automotive sector, Hyundai Motor gained 1.33%, while its affiliate Kia remained relatively flat. Defense stocks showed mixed performance, with LIG Defense & Aerospace down 1.26% and Hanwha Aerospace down 0.34%, although Korea Aerospace saw an increase of 0.59%.