Seoul, April 6 (IANS) South Korean stocks continued to trade higher late on Monday morning as investors anticipated a strong performance by Samsung Electronics in its first-quarter earnings guidance this week, boosting optimism in the artificial intelligence (AI) industry.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 116 points, or 2.16 per cent, to 5,493.3 as of 11:20 am (local time), reports Yonhap news agency.
On Tuesday, Samsung Electronics is set to release its preliminary first-quarter report, with some anticipating the operating profits to surpass the 40 trillion-won (US$26.4 billion) mark for the first time on strong demand for premium memory chips.
Investors, however, also remained cautious as U.S. President Donald Trump warned of striking Iran’s infrastructure, setting a deadline for Tuesday evening (U.S. time).
Market bellwether Samsung Electronics surged 4.03 percent, and chip giant SK hynix soared 2.28 percent.
Battery makers traded higher, with LG Energy Solution climbing 4.52 percent, and Samsung SDI increasing 5.36 percent.
Oil refiners gained ground amid the global market volatility, with SK Innovation adding 3.13 percent, and S-Oil rising 6.64 percent.
Hyundai Motor moved up 0.42 percent, and its sister Kia rose 1.73 percent.
Meanwhile, the South Korean won weakened against the US dollar after US President Donald Trump renewed threats to strike Iranian energy facilities and bridges if the Strait of Hormuz is not reopened, while setting a new deadline for action.
The won opened at 1,510.3 per dollar, down 5.1 won from the previous session’s close.
The currency has shown heightened volatility in recent sessions, remaining below the psychologically important 1,500 won level, as the war in the Middle East that began late February has driven up global oil prices, fueling concerns over inflation and a potential economic slowdown.
On Sunday (U.S. time), Trump said Iran would “be living in hell” if it fails to reopen the crucial waterway, extending his deadline for a deal by one day to 8 p.m. Tuesday.
Escalating tensions further lifted crude prices amid supply concerns, with Brent and West Texas Intermediate (WTI) climbing above US$110 per barrel.
Higher oil prices have pressured the won by increasing demand for dollars for crude imports, as South Korea relies heavily on imports for energy.
The dollar index, which measures the value of the U.S. dollar against the currencies of six major countries, surged to as high as 100.275 on Monday.
—IANS
na/