Summary
- President Donald Trump said Israel and Lebanon had agreed to a formal 10-day ceasefire.
- In the previous session, the Kospi and Kosdaq both closed higher as institutional investors and foreign investors posted large net purchases.
- US stocks hit records as semiconductor shares rallied, lifting the S&P 500 and the Nasdaq Composite to fresh highs, while Netflix fell on weak earnings.
Forecast Trend Report by Period
US President Donald Trump said on June 16 that Israel and Lebanon had agreed to a formal 10-day ceasefire starting at 5 p.m. Eastern Time, or 6 a.m. in South Korea on June 17. With the US-Iran ceasefire set to end on June 21, markets are watching whether the latest truce will also help broader negotiations to end the conflict between Washington and Tehran.
The Kospi jumped 2.21% in the previous session to close at 6,226.05, reclaiming the 6,200 level for the first time in 33 trading days since Feb. 27, just before the outbreak of the war involving the US, Israel and Iran. The Kosdaq rose 0.91% to 1,162.97. Institutional investors were net buyers of 1.1036 trillion won, while foreign investors bought a net 464.5 billion won. Samsung Electronics and SK Hynix, the market's two flagship stocks, climbed 3.08% and 1.67%, driving the advance. Hyundai Motor Group affiliates also rallied as interest in physical AI resurfaced, with Hyundai Motor up 5.12%, Hyundai Wia gaining 6.09%, Hyundai AutoEver rising 5.05% and Kia adding 4.22%.
All three major US stock indexes closed higher. The Dow Jones Industrial Average rose 0.24% to 48,578.72. The S&P 500 and the tech-heavy Nasdaq Composite both set record closing highs for a second straight session. The S&P 500 gained 18.33 points, or 0.26%, to 7,041.28. The Nasdaq added 86.69 points, or 0.36%, to 24,102.70, extending its winning streak to 12 sessions.
Chip stocks led the gains. Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, reported record first-quarter net profit, lifting Advanced Micro Devices 7.8% and Intel 5.48%.
Netflix, however, fell more than 8% in after-hours trading after reporting earnings that missed market expectations.
Trump also said the US was very close to an agreement with Iran and that a deal could be reached as soon as this weekend. He added that he could travel to Pakistan himself for that purpose. Iran's government welcomed the ceasefire between Israel and Lebanon. Still, a three-way contact involving Israeli Prime Minister Benjamin Netanyahu, Lebanese President Joseph Aoun and US Secretary of State Marco Rubio failed to materialize, leaving the outlook for a US-Iran ceasefire uncertain.
Lee Mi-a, Hankyung.com reporter mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
