(LEAD) Seoul stocks up over 1 pct on hopes for end to U.S.-Iran war

▲ Traders are seen working at the dealing room of Hana Bank in central Seoul on March 25, 2026. (Yonhap)

(LEAD) stocks-summary

(LEAD) Seoul stocks up over 1 pct on hopes for end to U.S.-Iran war

(ATTN: ADDS bond yields in bottom)

SEOUL, March 25 (Yonhap) -- South Korean stocks closed more than 1 percent higher Wednesday, on growing optimism the U.S.-Iran war could end soon. The Korean won fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 88.29 points, or 1.59 percent, to 5,642.21, after hitting an intraday high of 5,740.97.

Trade volume was moderate at 756.4 million shares worth 24.4 trillion won (US$16.3 billion). Winners outnumbered losers 716 to 165.

Institutional investors were net buyers, purchasing a net 2.3 trillion won. Retail and foreign investors sold off a combined net 2.6 trillion won of equities.

On Tuesday, U.S. President Donald Trump claimed he had productive talks with Iran on ending the monthlong war, adding that Iran has offered a "significant prize," related to gas and oil.

But Iran denied claims of having contact with the United States, according to foreign media.

"However, lingering uncertainties over the Middle East situation limited the rise in the local stock market," Lee Kyoung-min, an analyst from Daishin Securities, said.

In Seoul, most large-cap shares were trading higher.

Market top-cap Samsung Electronics inched down 0.37 percent to 189,000 won, while its chipmaking rival SK hynix rose 0.91 percent to 995,000 won.

Defense shares were strong, with Hanwha Aerospace adding 4.87 percent to 1,400,000 won and Hyundai Rotem climbing 7.2 percent to 190,700 won. LIG Nex1 jumped 14.51 percent to 734,000 won on news the company joined hands with U.S. data company Palantir to jointly develop defense systems.

Local brokerage Mirae Asset Securities shot up 10.15 percent to 67,300 won, on reports that SpaceX is aiming to file for a stock listing as soon as this week. The firm is among the investors of the space company founded by Tesla's Elon Musk.

The Korean won was quoted at 1,499.7 won against the U.S. dollar, as of 3:30 p.m., down 4.5 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 3.5 basis points to 3.558 percent, and the return on the benchmark five-year government bonds rose 3.1 basis points to 3.786 percent.

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