South Korean shares closed sharply higher on Monday after the U.S. and Iran reached an agreement to end the war in the Middle East.
The benchmark Korea Composite Stock Price Index, or Kospi, surged 5.2%, or 422.36 points, to close at 8,545.98. The Kosdaq increased by 0.5%, or 4.98 points, to end at 1,034.03.
U.S. President Donald Trump said on Truth Social on Monday that the deal with Iran would keep the Strait of Hormuz permanently open "toll-free" to shipping. He also authorized the immediate removal of the U.S. naval blockade from the key waterway.
The Korea Exchange activated a five-minute buy-side sidecar on the main Kospi market on Monday morning after a surge in buying activity triggered the market safeguard mechanism.
In economic news, South Korea's information and communication technology (ICT) exports rose 128.9% to $47.79 billion in May from a year earlier, marking the highest-ever ICT export growth rate, the Ministry of Trade, Industry and Energy said in a Sunday release.
In corporate news, Hanwha Ocean (KRX:042660) secured an order for the construction of four VLCC vessels worth 800.1 billion won from an unnamed Asian shipper.
Shares of the shipbuilder rose nearly 9% at market close on Monday.