Foreign investors buy heavily as reopening of Strait of Hormuz eases concerns over oil supplies, inflation A financial data screen at KB Kookmin Bank in Yeouido, western Seoul, shows the benchmark Kospi at 8,546.55 during intraday trading Monday. (Yoon Chang-bin/The Korea Herald) The South Korean benchmark Kospi soared Monday after the US and Iran announced an interim deal to end the war, easing concerns over disruptions to global energy supplies.Following the announcement, which included provisions for reopening the Strait of Hormuz, the Kospi opened 4.95 percent higher at 8,526.12 and extended its gains in early trading. The rally even briefly pushed the index above the 8,600-point threshold to 8,603.48 during trading.As of 2 p.m., the Kospi stood at 8,560.55, climbing 5.38 percent on the session.A buy-side sidecar, a five-minute trading curb, was triggered shortly after the opening bell at 9:06 a.m. The latest activation brings the total number of sidecars triggered on the main board this year to 26, including 14 buy-side and 12 sell-side sidecars.With eased uncertainty, foreign investors scooped up a net 640 billion won ($743.4 million) worth of shares on the main board, while institutional investors also bought a net 1.29 trillion won. Retail investors were the sole net sellers, offloading 1.89 trillion won, locking in profits after recent gains.Large-cap shares led the gains. Market heavyweights Samsung Electronics climbed 4.65 percent to 337,500 won, while SK hynix surged 7.26 percent to 2.306 million won.SK Square gained 2.72 percent to 1.395 million won and Samsung Electro-Mechanics jumped 14.06 percent to 1.955 million won.The rally pushed the total market capitalization of companies listed on the Kospi back above the 7,000 trillion won mark to 7,005.93 trillion won.The Kospi's market cap first surpassed the 7,000 trillion won mark on June 1, buoyed by gains in semiconductor stocks. It later fell back below 7,000 trillion won amid concerns about the conflict in the Middle East and a chip boom warning, but reclaimed the milestone on Monday as share prices surged.The Korean won also strengthened against the dollar as risk aversion eased. The currency was quoted at 1,511.4 per dollar at the opening of onshore trading, strengthening 8.4 won from the previous session.During trading, it briefly strengthened to 1,504 per dollar, its strongest level since June 1. It later pared some of its gains and was quoted at 1,511.38 per dollar as of 2 p.m.The peace deal between the US and Iran is expected to support the broader Korean economy, which has been weighed down in recent months by geopolitical uncertainty due to its heavy reliance on energy imports.In its revised economic outlook released last month, the Bank of Korea estimated that a US-Iran peace deal and the swift reopening of shipping through the Strait of Hormuz would lift the country's economic growth by 0.1 percentage point and lower inflation by 0.2 percentage point this year.Easing inflationary pressures could give the central bank greater flexibility in setting monetary policy. However, despite the ceasefire, a full recovery in global energy supply chains is likely to take time."A decline in oil prices and ease in inflation will prompt investors to refocus on earnings," Kim Du-eon, an analyst at Hana Securities, said."Corporate earnings will once again be the main driver of the domestic stock market, with memory semiconductors at the center. The market will once again focus on who holds the upper hand in the AI supply chain."