South Korea stocks stage dramatic recovery from worst-ever crash; STI opens up 1%

South Korea's Kospi leads a dramatic recovery in Asian markets, fuelled by diplomatic hopes and stabilising oil prices. Read more at straitstimes.com.

SEOUL - South Korea’s benchmark Kospi staged a dramatic recovery on March 5, soaring as much as 12 per cent at the open to swiftly erase almost all of its worst ever daily slump a day earlier, lifted by renewed hopes of progress in Iran diplomacy.

Japan’s Nikkei index meanwhile surged 4.1 per cent while Singapore’s Straits Times Index jumped 1 per cent when trading opened. The STI was up 0.7 per cent at 9.33am.

The rebound in Asian markets was fuelled by reports of secret diplomatic outreach from Iran’s Ministry of Intelligence, which signalled to the US Central Intelligence Agency an openness to talks on ending the war, The New York Times reported on March 4, citing officials briefed on the matter.

Market sentiment was further bolstered as global oil prices stabilised and Wall Street showed resilience overnight despite the ongoing Middle East conflict.

The Korea Exchange also activated a sidecar trading curb on both the benchmark Kospi and junior Kosdaq index, briefly halting programme trading for five minutes after stocks surged.

Among index heavyweights, chipmaker Samsung Electronics jumped 15 per cent while peer SK Hynix gained 16 per cent.