South Korean stocks hit record high amid US-Iran peace talk hopes

South Korean stocks celebrated a significant rally on Tuesday, with the KOSPI index soaring over 3.6% to a new all-time high of 8131.15 points. This surge followed market optimism fueled by renewed hopes for a breakthrough in peace negotiations between the United States and Iran.

US President Donald Trump indicated on Monday that talks with Iran were "going well," while also issuing a warning about potential renewed attacks if negotiations failed. Reports from Middle Eastern diplomatic sources suggested that the US and Iran were discussing a phased approach to reopening the Strait of Hormuz, a crucial strategic waterway, approximately 30 days after an agreement to end hostilities.

The positive sentiment surrounding the potential peace deal led to a drop in oil prices, which in turn stimulated a broader market upturn. While US futures saw gains, South Korea's market, closed on Monday, experienced a substantial catch-up rally. The KOSPI opened above the 8000-point mark and continued its upward trajectory, significantly boosted by the strong performance of major companies like SK Hynix and Samsung Electronics.

In contrast, Japan's Nikkei index, which had reached a record high on Monday, saw a pullback. After a modest opening gain, the index fell into negative territory, trading down about 300 points in early trading as investors took profits.

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