The domestic stock market started on a strong upward trend, with the KOSPI recovering the 8,700 level. Expanding expectations for a resolution to Middle East conflicts led to a decline in energy prices, improving investor sentiment and driving the rally.

During the morning session on the 16th, the KOSPI widened its gains from the previous trading day, surpassing the 8,700 mark. With the geopolitical risks that had recently weighed on the market showing signs of easing, investors' appetite for risk assets has revived.

■ "Progress in U.S.-Iran Peace Agreement"... Global Caution Softens

The market is focusing on news that the peace agreement process between the United States and Iran is making progress. As it was reported that both sides are undertaking preliminary steps for the implementation of the agreement ahead of a formal signing, the vigilance in global financial markets has somewhat eased.

The international crude oil market also reacted swiftly. Global oil prices recently halted their surge and turned downward. The stabilization of energy prices could lead to reduced cost burdens for companies and diminished inflation concerns, which is evaluated as a positive factor for the stock market.

■ Individuals Net Buyers, Foreigners and Institutions Net Sellers

On the supply and demand side, individual investors actively engaged in buying, supporting the market's rise. On the other hand, foreigners and institutions engaged in some profit-taking, showing a net selling trend.

Large-cap technology stocks also showed strength. With buying concentrated in the semiconductor sector, many of the top market capitalization stocks traded in positive territory. In particular, the strong gains in semiconductor-related stocks in the U.S. stock market are interpreted to have had a positive impact on the domestic market.

The KOSDAQ market also rose in tandem. Stocks related to artificial intelligence (AI) and semiconductor materials, parts, and equipment showed strength, driving the index upward.

■ "Easing of Middle East Risk is Positive... Global Variables Remain"

The financial investment industry believes that the easing of Middle East risks and the stabilization of international oil prices could provide a favorable environment for the domestic stock market for the time being. However, future global economic trends, changes in monetary policies of major countries, and corporate earnings announcements are cited as variables that will determine the additional market direction.

[※ This article was written with the assistance of an artificial intelligence (AI) analysis tool, and the final content was provided through an editorial process. The content included in this article is for informational purposes only and does not constitute a recommendation to buy or sell any specific stock or financial product. Investment decisions and the resulting responsibilities lie entirely with the investor. Actual results may vary depending on market conditions.]