(2nd LD) Seoul stocks soar over 2.7 pct to end at new high on hopes of peace talks and AI boom

▲ A screen shows the closing stock indexes of the South Korean market in the dealing room of Hana Bank in central Seoul on April 21, 2026. (Yonhap)

(2nd LD) stocks-summary

(2nd LD) Seoul stocks soar over 2.7 pct to end at new high on hopes of peace talks and AI boom

(ATTN: CORRECTS para 8; ADDS bond yields at bottom)

SEOUL, April 21 (Yonhap) -- South Korean stocks closed at a new historic high Tuesday, fully erasing their losses since the outbreak of the U.S.-Iran conflict, as investors expect progress in the two countries' peace talks and tech heavyweights gained traction. The Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 169.38 points, or 2.72 percent, at a new record high of 6,388.47.

Trade volume was heavy at 784.2 million shares worth 30.5 trillion won (US$20.8 billion). Winners outnumbered losers 455 to 408.

The index erased most of the losses seen since the onset of the war between the United States and Iran in late February, surpassing the previous high of 6,307.27 points on Feb. 26.

"The KOSPI's advance is in part due to the unwavering corporate earnings momentum," said Lee Kyoung-min, an analyst from Daishin Securities.

Lee said the local market is experiencing a rerating on the backdrop of a growing appetite for risky assets, especially from offshore investors who have been snapping up heavyweight equities.

Foreigners net purchased more than 1.3 trillion won worth of local stocks, compared with 1.9 trillion won net sold by retail investors.

Institutional investors were net buyers, purchasing 737.7 billion won.

The U.S. and Iran are still sparring over a second round of peace talks as the deadline for their two-week ceasefire is set to expire.

U.S. President Donald Trump said the deadline will not likely be extended, and expectations run high that Iran may come to the table for negotiations.

In Seoul, most large-cap shares closed higher.

Chip giant Samsung Electronics advanced 2.1 percent to 219,000 won, while its rival SK hynix climbed 4.97 percent to a record high of 1,224,000 won.

Battery makers were also bullish, amid continued momentum for the energy storage system (ESS) business and major supply deals announced by local companies.

LG Energy Solution jumped 11.42 percent to 478,000 won, while Samsung SDI vaulted 19.89 percent to 645,000 won. The two companies both said they have won major deals to supply batteries to German luxury car maker Mercedes-Benz.

Top carmaker Hyundai Motor added 3.61 percent to 546,000 won, while defense giant Hanwha Aerospace moved down 2.39 percent to 1,391,000 won and major financial group KB Financial inched down 0.31 percent to 160,400 won.

The Korean won was quoted at 1,468.5 won at 3:30 p.m., up 8.7 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.8 basis points to 3.33 percent, and the return on the benchmark five-year government bonds moved down 2.7 basis points to 3.541 percent.

(END)

(C) Yonhap News Agency. All Rights Reserved