KOSPI Composite Index Rises on Hopes of Easing U.S.-Iran Tensions [fn Morning Market]

[Financial News] The KOSPI Composite Index is rising as tensions between the United States and Iran show signs of easing. Semiconductor stocks are also gaining strength as the success of Meta Platforms' new AI agent, 'Muse,' fuels optimism about AI.
According to the Korea Exchange (KRX), the KOSPI Composite Index was trading at 7,075.50 as of 10:03 a.m. on the 23rd, up 57.59 points, or 0.82%, from the previous session. The index opened at 7,153.99, up 1.94% from the previous session, but pared its gains during the morning and remained in the upper 7,000s.
Foreign investors and institutions were making net purchases of 146.5 billion won and 718 billion won, respectively, while retail investors were making net sales of 1.14 trillion won.
By sector, medical and precision instruments rose 2.64%, electrical and electronics advanced 1.98%, and chemicals gained 1.95%. Construction fell 3.70%, machinery and equipment dropped 1.61%, and food, beverages and tobacco declined 1.07%.
Large-cap semiconductor stocks were strong among the top companies by market capitalization. Samsung Electronics preferred shares rose 3.78% and SK Square gained 3.53%, while Samsung Electronics and SK hynix advanced 2.80% and 1.52%, respectively. Defense stocks, however, were weak, with Doosan Enerbility down 2.43% and HD Hyundai Heavy Industries falling 2.41%.
Investor sentiment is believed to have improved after U.S. President Donald Trump made optimistic remarks during a United Nations General Assembly (UNGA) meeting between the United States and Iran on the 22nd local time, saying, "It was a very good meeting" and "It was a very productive meeting, and another meeting is scheduled in the very near future."
Risk appetite also appears to be recovering as optimism about AI gains traction. Meta Platforms' personal productivity AI agent, 'Muse,' received a favorable response after ranking first in the free applications category on Apple's App Store, which is believed to have contributed to the trend.
At the same time, the KOSDAQ was trading at 840.02, up 5.64 points, or 0.68%, from the previous session. Retail investors were making net purchases of 91.1 billion won, while foreign investors and institutions were making net sales of 45.8 billion won and 34.6 billion won, respectively.
Han Ji-young, a researcher at KIWOOM Securities, explained, "While negative sensitivity to macro factors such as the current policy of the Federal Reserve System (Fed) has declined, the market's attention appears to be shifting toward geopolitics amid external developments. Given that West Texas Intermediate (WTI), which had exceeded $100 for some time, has fallen below $90, we believe bets are shifting toward a calming of the situation through diplomatic solutions rather than further military conflict."
She added, "Although the KOSPI Composite Index posted a pattern of giving back most of its intraday gains the previous day, it is worth noting that it held above the 7,000 mark amid this trend. Despite still-high selling pressure around the 7,000 level, this suggests that resistance at the upper end is weakening compared with before."   
[email protected] Bae Han-geul Reporter