South Korean stocks surged more than 5% on Monday to close at a record high, with the Kospi nearing 7,000 points, as strong buying in semiconductor shares boosted the market while investors kept a close eye on developments in the U.S.-Iran peace talks front.
The Korea Composite Stock Price Index or Kospi increased 338.12 points, or 5.1%, to end at 6,936.99. The Kosdaq also rose by 21.39 points, or 1.8%, to close at 1,213.74.
On Sunday, President Donald Trump said the U.S. would help countries with ships stranded in the Strait of Hormuz. The US military support will comprise guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members. However, the naval mission is being seen as a violation of the ceasefire by Iran, top Iranian lawmaker Ebrahim Azizi said.
In economic news, South Korea's manufacturing sector continued to expand in April, with the seasonally adjusted headline S&P Global South Korea Manufacturing Purchasing Managers' Index increasing to 53.6 last month from 52.6 in March, S&P Global said in a Monday report.
A reading above 50 indicates an overall increase compared with the previous month, and below 50 indicates a decline.
April's expansion in the country's manufacturing sector was the strongest since February 2022.
In corporate news, HD Korea Shipbuilding & Offshore Engineering (KRX:009540) secured an order worth 504.8 billion won for three very large gas carriers from South Korean shipper KSS Shipping.
Shares of HD Korea Shipbuilding rose nearly 2% at market close.