Seoul Stocks Jump at Open as Oil Retreat and Wall Street Rally Lift Sentiment

South Korean stocks opened sharply higher on Friday, taking their cue from a Wall Street rally as lower oil prices and easing pressure in the U.S. bond market improved investor sentiment.

The benchmark Korea Composite Stock Price Index began the session at 6,885.7, up 170.29 points, or 2.54 percent, from the previous close. The early rise marked a strong start for Seoul equities after investors absorbed a mix of developments in global energy, bond and monetary-policy markets.

U.S. shares advanced overnight. The S&P 500 gained 1.14 percent, while the technology-heavy Nasdaq rose 1.69 percent. Those gains provided a favorable backdrop for the Korean market, which is highly sensitive to moves in U.S. technology shares and shifts in global risk appetite.

Energy prices also offered some relief. Benchmark Brent crude fell by almost 1 percent and settled at around $104 a barrel. The decline helped reduce immediate concerns about additional inflation pressure from energy costs and contributed to lower yields in the U.S. bond market. For South Korea, which depends heavily on imported energy, oil-price movements are closely watched because they can affect inflation, corporate costs and the won.

The rally came after the U.S. Federal Reserve increased its benchmark interest rate by a quarter of a percentage point, its first rate increase in more than three years. Although tighter U.S. monetary policy can weigh on global equities and emerging-market currencies, the session’s response suggested that investors focused on the accompanying easing in oil and bond-market pressures.

Friday’s opening move reflected conditions at the start of trading rather than the market’s final direction. Early gains can narrow or reverse as investors react to currency movements, foreign fund flows and new developments in global markets during the session.

Still, the opening showed how quickly Seoul shares can respond when several external pressures move in a supportive direction at once. The combination of stronger U.S. equities, a pullback in crude oil and softer bond-market tension gave investors room to buy Korean shares despite the Federal Reserve’s latest rate increase.

The next test will be whether the early momentum holds through the trading day and broadens beyond the initial reaction to overnight developments. Investors are also likely to keep a close watch on oil prices and U.S. yields, both of which remain important drivers for inflation expectations and valuations in the Korean market.