South Korean shares end higher as Iran ceasefire hopes lift sentiment

SEOUL, March 25 (Reuters) - Round-up of South Korean financial markets:

South Korean shares ended higher on Wednesday for a second consecutive session, as reports of a proposed U.S. month-long ceasefire and a 15-point plan for Iran boosted hopes of a breakthrough that could restore Gulf oil exports.

The benchmark KOSPI .KS11 climbed 88.29 points, or 1.59%, to end higher at 5,642.21. During the session, the index rose as much as 3.4%.

One source confirmed to Reuters that Washington sent Iran a 15-point settlement proposal and Israel's Channel 12, quoting sources, said the U.S. was seeking a month-long ceasefire to discuss the 15-point plan.

Tehran has denied any direct negotiations, with the state-run IRNA news agency quoting a military spokesperson on Wednesday as saying the United States is effectively "negotiating with itself."

"The domestic stock market cut gains as there still remains uncertainty over his words and actions," said Lee Kyoung-min, an analyst at Daishin Securities.

Among index heavyweights, South Korean chipmaker Samsung Electronics 005930.KS fell 0.37%, while peer SK Hynix 000660.KS gained 0.91% on a plan to list its shares in the U.S. in the second half of 2026.

Battery maker LG Energy Solution 373220.KS climbed 0.38%, while Hyundai Motor 005380.KS rose 1.83%. Steelmaker POSCO Holdings 005490.KS added 0.74%, while drugmaker Samsung BioLogics 207940.KS climbed 2.46%.

Of the total 923 traded issues, 719 shares advanced, while 166 declined.

Foreigners were net sellers of shares worth 1.3 trillion won ($867.07 million).

The won was quoted at 1,499.7 per dollar on the onshore settlement platform KRW=KFTC, 0.01% higher than its previous close at 1,499.9.

South Korea's pension fund will work to raise its strategic hedging ratio over the long term to help stabilize the fragile won, Reuters reported.

In money and debt markets, June futures on three-year treasury bonds KTBc1 lost 0.03 point to 103.54.

The most liquid three-year Korean treasury bond yield KR3YT=RR fell 0.1 basis points to 3.563%, while the benchmark 10-year yield KR10YT=RR rose by 1.1 basis points to 3.861%.

($1 = 1,499.3000 won)