Seoul, June 16 (IANS) Seoul stocks were trading higher late on Tuesday morning, as investor sentiment was lifted following a U.S.-Iran agreement to reopen the Strait of Hormuz.

The benchmark Korea Composite Stock Price Index (KOSPI) was up 145.52 points, or 1.7 percent, to 8,691.5 as of 11:20 am, reports Yonhap news agency.

Overnight, U.S. stocks rallied after U.S. President Donald Trump said a preliminary agreement to end the conflict with Iran had already been signed and the Strait of Hormuz would be “completely opened” on Friday.

The S&P 500 rose 1.7 percent, and the tech-heavy Nasdaq 100 gained 3.1 percent, while the Dow Jones Industrial Average reached a record high.

Oil prices retreated. Brent crude fell 4.76 percent to US$83.17 per barrel, while U.S. WTI dropped 4.87 percent to $80.75 per barrel, easing concerns over inflation.

Market top-cap Samsung Electronics edged up 0.89 percent, while industry rival SK hynix rose 2.91 percent.

Defence firm LIG D&A jumped 18.82 percent after announcing a partnership with German defence firm Rheinmetall to cooperate in air defence systems.

Daewoo Engineering & Construction surged 22.71 percent on expectations of new business opportunities in the Middle East amid eased geopolitical tensions.

The Korean won was quoted at 1,513.9 won against the U.S. dollar, down 2.8 won from the previous session.

Meanwhile, South Korea’s money supply continued to rise in April on an increase in short-term deposits and funds awaiting investment, central bank data showed on Tuesday.

The country’s M2, a key gauge of the money supply, stood at an average of 4,153.9 trillion won (US$2.74 trillion) in April, up 0.6 percent, or 25.3 trillion won, from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The figure has been on a steady rise since November. M2 is a measure of the money supply that includes cash, demand deposits and other easily convertible financial instruments.

—IANS

na/