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20.03.202601:31:17UTC+00South Korean Shares Edge Up on Easing Geopolitical Fears

The benchmark KOSPI rose 0.6% to around 5,800 on Friday, edging higher from the previous session as easing fears of a prolonged Middle East conflict improved risk sentiment. The advance followed signals from the US and Israel that they would exercise restraint in any further strikes on Iranian energy infrastructure, prompting oil prices to retreat after briefly surging above $119 per barrel at the peak of the escalation.

The pullback in energy prices helped temper immediate inflation worries and steady global markets, creating a more supportive backdrop for regional equities. The Korean won also strengthened, easing pressure on foreign capital flows and providing an additional tailwind for local stocks.

Performance among large caps was mixed. Losses in Samsung Electronics and SK hynix capped broader market gains, while LG Energy Solution (+1.1%), Samsung Biologics (+2.5%), and Doosan Enerbility (+1.9%) advanced.

Nonetheless, the Middle East conflict remains a significant risk factor. Persistently elevated oil prices and ongoing supply uncertainties are likely to keep market volatility elevated in the near term.

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