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South Korea's KOSPI Composite Index surged by over 1.7% to reach 5,653 points, marking a significant recovery for the benchmark. The rally was primarily driven by statements from US President Donald Trump regarding ongoing diplomatic communications with Iran. Reports indicate that Trump has delayed a decision to strike Iranian power plants following threats from Tehran to target energy infrastructure in neighboring countries. This apparent de-escalation has sparked a 'risk-on' sentiment across Asian markets, providing much-needed relief to South Korean equities. Investors are reacting positively to the reduced likelihood of a full-scale military conflict in the Middle East. Market participants are now closely monitoring the USD/KRW exchange rate and the EWY exchange-traded fund for further signs of stability.
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