Seoul shares extend gains on US-Iran ceasefire optimism

Seoul, April 10 Seoul shares extended gains late on Friday morning, tracking overnight advances on Wall Street amid optimism over upcoming negotiations between the United States and Iran following their two-week ceasefire deal in the Middle East conflict.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 103.21 points, or 1.79 percent, to 5,881.22 as of 11:20 a.m.

Overnight, the Dow Jones Industrial Average gained 0.58 percent, while the tech-heavy Nasdaq Composite advanced 0.83 percent, reports Yonhap news agency.

Investor sentiment was supported by geopolitical developments in the Middle East. Israeli Prime Minister Benjamin Netanyahu on Thursday approved direct talks with Lebanon aimed at disarming Iran-backed Hezbollah militants, in a move seen as potentially reinforcing ceasefire efforts.

Netanyahu earlier said no formal ceasefire agreement exists between Israel and Lebanon.

The U.S. and Iran are expected to begin negotiations over the weekend to formalise the ceasefire terms. U.S. President Donald Trump said overnight he is optimistic about reaching a deal, while warning Tehran against interfering with shipping in the Strait of Hormuz.

Institutional and foreign investors purchased a net 87.3 billion won (US$59 million) and 393.94 billion won worth of shares, respectively, outweighing retail investors' net selling of 631 billion won.

Most large-cap stocks traded higher.

Market bellwether Samsung Electronics rose 2.21 percent, and its chip rival SK hynix jumped 3.41 percent.

Top carmaker Hyundai Motor gained 0.2 percent, and leading shipbuilder HD Hyundai Heavy Industries rose 1.81 percent.

Among decliners, leading refiner SK Innovation fell 2.18 percent, and leading battery maker LG Energy Solution declined 1.9 percent.

The local currency was trading at 1,480.95 won against the greenback at 11:20 a.m., up 1.55 won from the previous session, according to the report.

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