Seoul, April 15 (IANS) Seoul shares soared more than 2 per cent on Wednesday to close above 6,000 points for the first time after the outbreak of the US-Iran conflict in late February. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 123.64 points, or 2.07 percent, to close at 6,091.39, after hitting an intraday high of 6,183.21, reports Yonhao news agency.

Trading volume was heavy at 915.03 billion shares worth 31.37 trillion won (US$21.3 billion), with gainers outnumbering losers 570 to 273.

Foreigners purchased a net 552.19 billion won worth of stocks, offsetting net selling by institutions and individuals amounting to 22.37 billion won and 935.64 billion won, respectively.

Risk-on sentiment emerged amid hopes that Washington and Tehran would hold a second round of peace talks after their first round ended without agreement.

The U.S. military began a blockade of the Strait of Hormuz on Monday following the breakdown of weekend talks in Islamabad, Pakistan, between Washington and Tehran.

However, U.S. President Donald Trump said Iran wants to reach a deal with the United States, raising expectations that the two sides could return to negotiations.

Despite ongoing tensions in the Middle East, Brent crude fell nearly 5 percent to below $95 per barrel on Tuesday.

The main index also tracked overnight gains on Wall Street, where the Dow Jones Industrial Average rose 0.66 percent and the Nasdaq composite gained 1.96 percent.

“Major companies’ planned release of first-quarter earnings results later this month has reemerged as a positive driver and upside momentum for the market amid deal hopes in the Middle East,” said Lee Kyung-min, an analyst at Daishin Securities Co.

Tech and auto stocks led the gains.

Market bellwether Samsung Electronics rose 2.18 percent to 211,000 won, while its chip rival SK hynix climbed 2.99 percent to a record high of 1,136,000 won.

Top carmaker Hyundai Motor jumped 3.36 percent to 508,000 won, and its smaller affiliate Kia Corp. gained 1.54 percent to 151,500 won.

Among decliners, defence giant Hanwha Aerospace Industries fell 0.92 percent to 1,509,000 won, while Korea Aerospace Industries declined 1.71 percent to 190,000 won.

The local currency was quoted at 1,474.20 won against the greenback as of 3:30 p.m., up 7 won from the previous session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.1 basis points to 3.328 percent, and the return on the benchmark five-year government bonds declined 0.3 basis point to 3.516 percent.

–IANS

na/